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Celcom Pricing Strategy

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Celcom use price penetration strategy and psychological pricing when it comes to gain large market share and customer base. Celcom often offers new product from year to year that it is crucial to play around with the figures to either trick or attract customer to win over their preferences when selecting Telco Company.
“With high availability of internets across the Malaysian globes, a price penetration strategy is advisable to enhance customer’s usage, and introducing the service. On the other hand, they would use that opportunity to increase price on improved products. Celcom should also be sensitive to the price elasticity of its product and overall consumer demand.” (Celcom Official Website, 2009)
Penetration pricing is commonly used by utilities, especially phone and cable or satellite services, although it is sometimes found in competitive gas and electricity markets as well. Many home phone, cellphone, cable and satellite providers offer a discounted rate for a period of time, such as your first six months of service, to get you to switch to their service. After your discount period has ended, the price increases significantly, but the company hopes you have become used to its service and won't go through the trouble to change to a different company.

KUALA LUMPUR: Celcom Axiata Bhd aims to strengthen its market penetration in the middle to high-end customers segment in urban areas this year via a number of Internet-centric products it has been launching since October last year.
This initiative came about following its effort in solving most of its technical glitches it faced in the area of customer phasing system last year.
The wholly-owned company of Axiatia Group Bhd and the second largest mobile operator in the country by revenue is said to be back on track in the industry’s competitive race skewed towards data-based products and services and

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