Analysis of Apple's Pricing Strategy: Good-Better-Best Approach

This report delves into Apple Inc.'s pricing strategies, focusing on the application of the Good-Better-Best approach within the context of international marketing. It begins with an overview of Apple's organizational structure, its global presence, and its engagement in the design, development, and sale of consumer electronics, software, and online services. The report then analyzes the various pricing strategies currently employed by Apple, such as skimming pricing and minimum advertised price, and how these strategies contribute to maintaining market share and profitability. The core of the report examines the Good-Better-Best approach to pricing, explaining its structure and providing examples. The report then recommends how Apple can utilize this approach to attract a wider customer base, including those who may not be able to afford the highest-priced products, thus increasing market share and competitive advantage. The report concludes by emphasizing the importance of carefully managing price gaps and implementing the Good-Better-Best approach effectively for Apple's continued success in the global technology market.

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Introduction
The purpose of this paper will be to discuss about the Good-Better-Best Approach to
Pricing in the context of the organization of Apple Inc. Identification of the current pricing
strategy that is followed by this company will be done along with suggesting
recommendations that the management need to follow in order to utilize this Good-Better-
Best Approach to Pricing in its pricing strategy. This may help the organization to reach to its
products to a new segment of people who are not buying the wide range of products that bare
manufactured and offered by this multinational global brand due to the pricing strategy that is
followed by them.
About the Organization and its Pricing Strategies
In this context, it can be said that the organization of Apple is a technology
organization having its global presence, which is based in America. They are engaged in
designing, developing and selling computer software, consumer electronics and online
services. Apple is considered as a part of the Big Four technology organizations, along with
Google, Amazon and Facebook. It was founded in the year of 1976 as Apple Computer
company by none other than Steve Jobs, who has totally changed the perception of the people
towards a technical product (Apple, 2020). It can be noted in this context that advancement in
the area of technology has totally changed the tastes and preferences along with the buying
behaviour and pattern of the customers around the world.
Different pricing strategies are followed by the management of Apple in order to sell
their wide range of products and services to their customers. For example, skimming pricing
is followed by them where the prices of the products they are selling are set with higher price
tags to earn more profit. There is a niche customer segment for this globally reputed brand,

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who whatever may be the price will be, will but the products of this organization. Apart from
this, a retail strategy in the name of minimum advertised price is also followed by Apple,
which restricts the resellers and dealers to go beyond a certain minimum price. All these
pricing strategies help the management to earn money as well as maintain their market share
in the global market place of technology products (Chen & Ann, 2016).
Good-Better-Best Approach to Pricing
This is the pricing strategy or approach that involves a range of price points, from low
to high, which helps the customers to select the exact price bracket in which they will suit the
best. In other words, it can be said that there are three pricing options that are offered to the
customers for a particular product or service (Bertini & Koenigsberg, 2016). The prices are
gradually increased in this method, which involves the good, the better and the best option.
For example, when the food is offered in restaurants or movie theatres in terms of small,
medium and large options, that is the example of Good-Better-Best Approach to Pricing.
Another example can be stated when a passenger selects in between the premium economy,
coach and business class while going from one place to the other through flights. Through
this, the mind-set of the customers can be identified by the management of the organizations
and they can design their plans according to this and set the strategies to attract more people
towards the good, better and best options. The business houses can follow three kinds of
approaches under this strategy, which includes focusing on generating fresh growth and
revenue as offensive approach, to counter the strategic moves by competitors as defensive
approach and following the basic principles of consumer psychology as behavioural
approach. But it can be said in this context that organizations often follow unethical ways in
order to earn more profit by attracting people from the market place.

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Recommended Steps for Apple
In this modern competitive world, the strategies need to be changed on regular basis
according to the market conditions and ever-changing needs and preferences of the people
who are present in this global market place. Apple can also follow this in terms of pricing
strategies that are followed by them. But before making any kind of alterations in their
strategies, identification of the attributes is important based on which the strategy will be
implemented which will help to prevent present customers from going down from the current
offering that are offered by Apple to its customers. This Good-Better-Best Approach to
Pricing can be suitable for the organization of Apple, as it will help to provide three ranges of
products to its people (Mohammed, 2018).
Besides the niche segment, who possess the power to buy the best priced product,
there are certain market segment who possess the likeness towards the wide array of products
that are offered by them, but do not have the enough financial power to buy them. These
segments of people are getting missed by Apple and this is leading to lose both the market
share and competitiveness in the global technology market. They can manufacture and offer
their products in these three approaches under the Good-Better-Best Approach to Pricing.
This will help them to attract all kinds of people as well as increase the market share of the
organization. Apart from this, the profit earning for this company can also be increased if this
particular pricing strategy is followed. Vast segment of people can get attracted to wars this
globally reputed business entity. Likings towards a particular can be identified through this
approach and products and services can be offered to them accordingly in near future (Faith
& Agwu, 2018).

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Conclusion
From the above discussion, it can be stated that Apple will get benefitted if Good-
Better-Best Approach to Pricing is followed by the management of this organization. But
effective and efficient steps need to be identified and followed, so that the implementation
process can be done flawlessly. The price gaps between Better and Best and Good and Better
need to be closely followed by the management of Apple, so that success can be tasted by this
company. This will help them to gain both the market share and competitive advantage over
its rivals.

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Reference
Apple. (2020). Apple. [online] Available at: https://www.apple.com/ [Accessed 18 Jan.
2020].
Bertini, M., & Koenigsberg, O. (2014). When customers help set prices. MIT Sloan
Management Review, 55(4), 57.
Chen, C. M., & Ann, B. Y. (2016). Efficiencies vs. importance-performance analysis for the
leading smartphone brands of Apple, Samsung and HTC. Total Quality Management
& Business Excellence, 27(3-4), 227-249.
Faith, D. O., & Agwu, E. (2018). A review of the effect of pricing strategies on the purchase
of consumer goods. International Journal of Research in Management, Science &
Technology (E-ISSN: 2321-3264) Vol, 2.
Mohammed, R. (2018). The Good Better Best Approach to Pricing. Harvard Business
Review, 96(5), 106-115.