I would recommend a competitive pricing method, potentially combined with a premium pricing strategy, depending on the phone's features and perceived quality.

Justification:

• Market Competition: Given the presence of established competitors, it's essential to consider their pricing strategies. A competitive price ensures the phone remains attractive to consumers.
• High Production Costs: The high R&D and production costs necessitate a pricing strategy that allows for profit generation.
• Brand Positioning: If the phone offers superior features, technology, or brand reputation compared to competitors, a premium pricing strategy can be justified. This communicates higher quality and exclusivity.
• Price Sensitivity: The company needs to analyze the price sensitivity of the target market. If consumers are highly price-sensitive, a competitive price is crucial.

Cost-plus pricing alone might make the phone uncompetitive. Value-based pricing is difficult to implement effectively in a highly competitive market without a clear differentiator. A purely competitive price might not adequately cover the high production costs. Therefore, a strategic combination of competitive pricing with a premium element, based on the phone's unique selling points, is the most appropriate approach.

I would recommend a value-based pricing method for this coffee shop. This is because the location in a busy city centre offers a significant advantage – high foot traffic and a diverse customer base. The coffee shop can leverage this by positioning itself as offering a premium experience that justifies a slightly higher price point than competitors.

Justification:

• High Demand & Perceived Value: The location suggests strong demand. Customers are willing to pay a premium for convenience and a pleasant atmosphere.
• Differentiation: The coffee shop can differentiate itself through quality ingredients, skilled baristas, comfortable seating, and a welcoming ambiance. This justifies a higher price than a basic coffee shop.
• Target Market: The diverse customer base includes those willing to spend more for a better experience (e.g., students needing a study space, office workers wanting a quick, high-quality coffee break, tourists seeking a local experience).
• Potential for Profitability: A value-based approach allows for higher profit margins compared to cost-plus pricing, especially if the coffee shop can effectively communicate the value proposition to customers.

While cost-plus pricing might seem simpler, it doesn't fully exploit the potential of the prime location and the opportunity to create a strong brand image. Competitive pricing might lead to a price war, which could negatively impact profitability. Value-based pricing allows the coffee shop to set a price that reflects the perceived worth of its offerings to its target market.

The luxury hotel should use dynamic pricing, also known as demand-based pricing. Dynamic pricing involves adjusting prices in real-time based on current demand, competitor pricing, and other factors.

How dynamic pricing works for a luxury hotel:

• Peak Season (e.g., Summer, Holidays): Prices would be significantly higher to capitalise on high demand. Rooms might be priced at £300-£500+ per night.
• Off-Season (e.g., Winter, Weekdays): Prices would be lower to attract guests during periods of low demand. Rooms might be priced at £100-£200 per night.
• Weekend vs. Weekday:** Weekend prices would be higher than weekday prices due to increased demand from leisure travellers.
• Special Events (e.g., Concerts, Festivals): Prices would be significantly higher if a major event is taking place nearby, anticipating increased demand.
• Last-Minute Bookings: If rooms are not fully booked, prices might be lowered closer to the check-in date to fill remaining vacancies.

Benefits of dynamic pricing:

• Maximises revenue: The hotel can charge higher prices when demand is high and lower prices when demand is low.
• Optimises occupancy rates: Dynamic pricing helps to fill rooms during periods of low demand.
• Improves competitiveness: The hotel can adjust its prices to match or beat competitor prices.

Example: Airlines and ride-sharing services like Uber are well-known examples of companies that use dynamic pricing. The price of a flight or a ride can change depending on the time of day, the number of passengers, and the availability of seats or drivers.