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Pick a product/service within an industry. Identify a low-tier, mid-tier,

November 28, 2021

Pick a product/service within an industry.
1. Identify a low-tier, mid-tier, and high-tier solution in that industry.
2. Identify the approximate price point for each tier.
3. Justify the price at each tier, and the reason for the differences between the prices.
4. Explore what customers expect and how they act at each tier.
5. Then, propose a new solution for that industry.
6. Identify the price tier (approximately) for your new solution.
7. Walkthrough the following transactional costs for that solution:
  1. Search costs (finding buyers, sellers)
  2. Information costs (learning)
  3. Bargaining costs (transacting, communicating, negotiating)
  4. Decision costs
  5. Policing costs (monitoring cheating)
  6. Enforcement costs (remedying)

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