Pricing Decisions: Nabi Dream Tab Hd8 Tablet

Pricing Decisions: NABI Dream Tab HD8 Tablet

AMP 415

Professor Fredrick Sutton

Brittany Cassese

Daryl Harriger

Jacob Wilkson

Johnathan Whitworth

November 22, 2015

The Purple group has selected the Toys R Us’s NABI Dream Tablet as the pricing decision product.   The setting of a product’s price is driven by the financial goals of the company producing the product (Donaldson, 2015).  Based upon the NABI Dream Tablet’s need for constant updates and internet connectivity is one aspect that will not be computed as an added non- value of the tablet.  Toys R Us would have to calculate the added value and the non-added value to offset the revenue margin of the cost of goods sold.  This would have to be a very meticulous process and the margin of error allowed is very slim.   However, the strategic implications that must be addressed in setting the price of the tablet are the developing, demands, and competitor considerations.

The cost of the development of the NABI Dream Tablet is the very first implication that needs to be addressed.  The development of the tablets includes accessing the device though touch, voice, and video (Taylor, 2012).  This in itself must be computed in the price of production along with maximizing the longevity of profits.  According to Mandal, 2012, there is a feature on the NABI that controls the activity time of the tablet.  This development allows for the customer (parent) amount of time that their child spends on the NABI Dream Tablet.  Along with developers adding an overlay that the company calls Blue Morpho, which includes more than 400 new and kid-focused features (Attikisson, 2015).  Vendors such as Toys R Us that sell the tablet must ensure that a valid deal with Fuhu that is conducive to the financial goals of the store.  Enhancing a customer’s overall capabilities through use of the tablet is essential to the marketing implication that is required for building the demand for the tablet.  

Demand of the NABI Dream Tablet definitely drives the price making decision process.

The team must consider the income, expectation, and flexibility of the buyer (Taylor, 2012).  The supply and demand of this product matched with the income and expectation of the buyer will lead to a fair pricing decision.  The higher the price for certain products meets the consumers taste.  Regarding the NABI Dream Tablet this is not the case.  The demand of this tablet based on the tablet’s compliance with the Children’s Online Privacy Protection Act, a law that mandates the way companies collect information on kids under 13 (Mandal, 2014).  This in itself will allow for a price above $100.00 to be set for the tablet, based on this being a value added cost for the consumer and the company.  A major factor that is often overlooked when pricing product is the substitution of the product that is being marketed.