Strategy question

You are in charge of pricing for an immersive AR/VR experience type offering. How would you price it?

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What this question tests

Tests pricing strategy reasoning for a new, less-commoditized experience category, requiring a chosen pricing model with justification.

How to approach it

  1. Clarify the offering: assume a content or experience access model rather than hardware alone.
  2. Anchor value to comparable entertainment experiences, movie tickets, escape rooms, gaming subscriptions, since AR/VR lacks a direct comparable yet.
  3. Consider a tiered model, pay-per-experience for casual users and a subscription for frequent users who justify the hardware investment.
  4. Factor in the cost structure: content creation is high fixed cost with low marginal cost per additional user, favoring a subscription or volume model.
  5. Define success as conversion rate at different price points and repeat purchase or subscription retention rate.

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