Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)

Abstract

Cento-Tel Data Products for the us Market: Pricing Strategy and Demand Forecasting for New Products

Author(s): Vikas Gupta and Dr. Prem Prakash Dewani

The case discusses that how a leading player in the international mobility market (Cento-Tel from India) is trying to tackle the problem of growing uneasiness among the customers on increasing bills due to high data usage charges. How firm use multiple pricing strategies i.e., cost-based pricing, competition-based pricing and value-based pricing to address the price sensitivity of the target population. Further, for managers, the case focus on how the overall profitability of the firm considering each type of pricing levels, contribution margins and price sensitivity is being analyzed. The case also discusses that how a new product is being priced in the international market and how its demand is forecasted.