Describe what methods are open to you to price products and, Ask an Expert

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Write down 2-3 page paper in which you reply the following case question: Amazon's Kindle 2.0 was priced at $359 and delivery started in February 2009. Price was dropped to $300 in July after newer model with larger screen, Kindle DX, was launched, priced at over $400. In January 2010 Apple announced launch of iPad, lowest priced version of which was to sell for $499. Suppose that you are in charge of pricing of the Kindle models. Describe what methods are open to you to price products and factors which you must take into account in deciding on these prices. Then suppose which you are responsible for deciding future pricing of Kindle models over next year. What prices are being charged now and what would you suggest Amazon charge? Explain why?

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