Product Pricing Component: Dell, Inc. Essay

542 words - 2 pages

Dell Inc. is one of the world's largest direct order computer systems companies, prides itself in being the most profitable in the industry as a result of their success of understanding consumer needs, quickly providing desired technology, utilizing the direct business model, and focusing on providing the best customer service. To the casual observer, Dell Corporation's business is deceptively simple and operates seamlessly. For example, an interested consumer goes onto the Internet, prices and orders a computer customized with a desired set of name-brand components, and 2-3 days later it is delivered right to their doorstep. The end user misses the behind-the-scenes activities and only realizes they have quickly and painlessly received a quality product at a very good price. The convenience of the direct marketing system pacifies the consumer's need for immediate gratification, thereby adding value and utility to Dell's offerings.Dell, as most successful retail organizations, attract additional customer purchases through lowering individual component prices when purchased as a multiple item set. By offering a complete computer system bundled with complementary products (software, printers, monitors, etc.), the perceived value to the customer has been increased. This entices the customer to purchase the bundled offering, which reduces the total cost of the computer. Add to the product's value by adding more value to the product. This tricky riddle is the secret of marketing complementary products. Due to the advantages of partnering with computer parts manufacturers, Dell offers competitive pricing on the latest technology driven by the market and consumer demand. Following the law of demand, the latest and greatest computer components are priced higher due to lack of availability and as a way to maximize revenue....

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