Home » Market and Competition in Pricing Strategy » Review: Your company produces metal kitchenware. How would you be able to move the fair market value line higher when you introduce copper mugs into your barware line?

Review: Your company produces metal kitchenware. How would you be able to move the fair market value line higher when you introduce copper mugs into your barware line?

You’ll need to find out what your competitor’s next move will be.

You have to determine exactly what price you’d have to set to move the fair market value line higher.

You’ll have to create a value segment that has a higher willingness to pay for copper mugs.

You’ll need to find out if your competitors will change the price of the next best alternative.

Shifting the fair market value line higher is difficult, because it generally takes more than just some new product features. Companies have to be able to increase the brand appeal or create a value segment that has a higher willingness to pay. If the company can do that with the new copper mugs, they may be able to shift the value line.