WGU D376 Task 2 Questions With Complete Solution

Lexi Anderson Product, Price, and Customer Experience (VQM2) Task 2 2 November 2025 Pricing Strategies and Tactics A. There are both internal and external factors that influence consumer price perception. Some internal factors include: • Brand image- A company’s image will influence price perception. If the company is reputable a customer may be willing to spend more on the product. If consumers have a negative perception of the brand, then the consumer may begin to go to different brands. • Promotions & Discounts- How often a company discounts or runs promotions on their items will influence price perception. If a consumer sees the item is on sale for a long time, the consumer will see the sale price as the real price and won’t want to pay the full price. External Factors • Natural disaster: Natural disasters can affect price perception by impacting the supply chain affecting the pricing of the item due to difficulty in sourcing materials. • Competition: The number of competitors in the market can impact price perception. Other brands such as Dynamo have managed to keep their prices low. Making prices high for our drink may impact sales. Pricing Strategy The best pricing strategy for the launch of the limited-edition drink would be to engage in a competitive pricing strategy for the product. Making sure to keep prices like competitors will be sure to keep consumers engaged with the product. I think pricing the product at $3.65 in the West region is the best solution. It’s lower than other competitors and even with the higher development rate, this will attract consumers and increase customer retention which then will lead to an increase i