Factors affecting pricing decision
Kia Optima is one type of the oligopolistic competition market. It dominated by a small number of sellers, each seller is likely to be aware of the actions of the others. The prices might be uniform or not uniform to buyers. The price can be different at different places due to the reason of labor, resources, and taxes. Besides, there are few competitors include Toyota, Honda, and Hyundai.
New Product Pricing Strategies
Normally when company bringing out a new product, they will face of setting prices for the first time include Kia Optima. In order to solve this problem, Kia Optima uses market penetration pricing. They redesigned the car and become a serious contender among midsize cars and much more lower price if compare with other midsize car. They also like that it come with plenty of standard tech features, like Bluetooth and a USB iPod jack. It can attract a large number of buyers quickly and win a large market share. A part of that, they also redesigned the turbo engine which has power that matches most V6 engines in the class. The 2012 Kia Optima should be on most midsize car buyers’ lists because it provides pleasing performance, good fuel economy and a spacious, high-tech interior, all of which combine to make it a great value if compares to the others. Product Mix Pricing Strategies
a) Product Line Pricing
Kia Optima’s customized solutions range breaks up its product offerings by year of product, turbo engine, manual or automatic car. Each type of car can suit the different needed among the customers from the features of comfortability and safety issue. Customers can evaluation on different features and buy which they like and suitable. For example, in year 2012, Kia Optima is a mid-size sedan equipped with FWD and seating for five. The Optima is offered with two different engines; a standard 2.4-liter 4-cylinder engine that produces 200 hp and 186 lb-ft of torque MSRP RM71400 and an...