…1) The product, a digital personal weight scale, allows consumers to control their weight at home. Especially, weight scales benefits people who are on a diet and people who suffer from obesity. The product is a device which integrates a scale and a digital component. The use of the integrated system is expected to make it more convenient for people to manage their weight. More expensive equipment offered more substantial computational capacity, and both graphical and digital displays and print-outs. The product meets the consumers needs involving a wide audience of potential buyers: professional sportsmen, individual buyers, shaping and sports clubs, etc.

2) The pricing decision is influenced by a number of substitute products such body weight analyzers, solar scales, dial scales. They have a great impact on pricing decision being very similar to the digital personal weight scale for home use. The products differ by modification and settings. The price is influenced by product homogeneity factor. Thus, Tanita finds it desirable to distinguish their products from those of their competitors in ways that consumers find meaningful.

3) Differential elasticities of demand are necessary because there is to be a profit incentive for Tanita to set a higher price in one market than another. High price elasticity suggests low prices; price inelasticity suggests high prices. Another necessary condition for differential pricing is that the market is separated effectively. Unless tariffs, transportation costs, or re-exporting costs are higher than the price differential, or unless other restrictions on the free transfer of goods across political boundaries exist, products sold in a low-price market may find their way into a high-price market. The price is elastic because product prices and income are predetermined and the quantity of the product is varied.

4) In general, pricing policy for a digital personal weight scale is based not only by cost and the nature of demand but also by competitive action. Competitors do not adjust their prices in response to rising costs, management—even if acutely aware of the effect of rising costs on operating margins—will be severely constrained in its ability to adjust prices accordingly. In this case, pricing policy of Tanita is depended on the pricing policy of its major competitors, and their special proposition for weekends. Today, is necessary to cut prices to stay competitive. Costs are helpful in estimating how rivals will react to setting a specific price, assuming that knowledge of one’s own costs helps to assess the reactions of one’s competitors. Costs may help in estimating a price that will keep out or discourage new competitors from entering an industry…

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