Abstract:
This case study examines how a firm faces pricing and logistics issues in an uncertain environment ridden by substitute products, raw materials shortage, legal and social adversities. In an article titled “Price as stimulus to think- a case for willful overpricing” by Luc Wathier& Marco Bertini ( Feb 21, 2006) they state the following “ Accounting for the effect of price as a stimulus to think, a monopolistic firm should either overprice (transgressive pricing) or underprice ( regressive pricing ) in comparison to consumer’s willingness to pay. Under certaincircumstances the firm should also empower the consumers with means that reduce the effort ofdeliberation”.
