Interesting presentation on Price Signalling & other tactyics to avoid price wars

1. Pricing 2505 (Fall 2006) University of Aarhus
School of Economics and Managment Anthony Dukes
Competition
Price Signaling
Competition
Price Signaling: Introductory Example
• Tassimo
• $169
• Rating: 4.5 Cups
The Cadillac of single-serve coffee systems,
Kraft's Tassimo is one of the most
expensive machines on the market. But it
also brews up one of the best cups of Joe
and the most authentic espresso-based
drinks. The latte rivals Starbucks, and the
foam on the cappuccino is good until almost
the last drop.