When researching the price of virtual styling applications the prices vary. Larger companies did not charge a price for their applications and website subscripitions while unknown companies did. The price of my product will be priced around $9.99. The other applications do not offer virtual styling services, they only offer style recommendations and fashion updates. I believe that 9.99 is a good price to offer for the application. I would also consider going a bit higher, around $15.00 for the application as well. I do not want to price it too high because I am not sure if consumers would pay mor than $20.00 for this application. A free trial will be given for customer to try out the virtual styling experience for a day. Consumers can try out the application and use the sites features as a paid member. At the end of the trial, consumers can purchase the application.
I also researched some applications that allow consumers to have memberships options. "The more you appeal to the masses, the less exclusive you become, and the less value your premium possesses." (Sinek, 2009). This would allow me to lock consumers into subscriptions. If I were to choose the subscripition option it would provide a continuios stream of income for the company and also give consumers different level of memberships. Regular membership is a general subscripition to the site and its features. VIP membership would be more in price and offer incentives such as free shipping in specific orderes, sneak previews to new collections, and also in depth personal styling and recommendations. I am not sure which route to go. I would like feedback to make the best decision.
The size of the e-retail industry is constantly growning. Foster research reported that online retail in the U.S. will grow at a compound annual rate of 10% from 2012 to 2017. Sales will grow from 225.5 to 434.2 billion dollars. Duing the 2014 fiscal year, my company plans to cover 7% of the online retail market duing...
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