Kingsoopers Price Survey

Pam and Susan’s department stores are in the process of opening a new business unit. There are two locations that are being considered for the new store and decision is based upon estimates of sales for both of them. My job is to use data gathered from each store as well census data in store’s trading zones to predict sales at both of the sites that are being consider for their newest store.

2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1, what is the maximum quantity that Mia might purchase?

Changes in price can affect buyers' purchasing decisions; this effect is called the income effect.

1. Using a similar approach as example 2.3 (textbook page 75): “Finding the Sale Price of Items in a Department Store”, provide your analysis for the following problem statement:

Consumers have certain types of perceptions of price in correlation to the product quality and service; therefore, company should base their price on the customer’s perceived value (K&K). Some consumers are price sensitive, while others are quality or both. “The key to perceived-value pricing is to deliver more unique value than competitors and to demonstrate this to prospective buyers” (p.183). For example, Dish Network has introductory price for a year or two, then it bounces back to regular price. Also, the company offers different TV packages, which can be customized according to the station most watched or one can pick one of the package the company provides. I have been with Dish Network for more than 5 years and one thing that kept

Jerry Useem has indited, “How Online Shopping Makes Suckers of Us All” to show the online shoppers and readers of “The Atlantic” how price discrimination occurs. He has decided to verbalize about the quandary with online prices since there has been a elevate in the number of online shoppers. In the article, “How Online Shopping Makes Suckers of Us All,” Jerry Useem commences off by expounding how the prices of certain products vary depending on when the customer optically canvasses the product. To integrate on, he goes on to apprise the audience that in the past, buyers and sellers would have to go through haggling in order to get the best deal possible, he then compares the haggling to how people get the best deals now. Furthermore,

The determination of these values requires you to add columns to the Inventory Analysis worksheet. Mr. Milligan asks you to use the worksheet provided. As Mr. Milligan will use the Inventory Analysis worksheet during a presentation, he wants the worksheet to have a professional appearance. To enhance the worksheet’s appearance, you include an appropriate header and format to the worksheet, column, and row labels. The header should display the name of the business, the name of the worksheet, and the current date. As you construct the worksheet, you use the currency format for all columns containing dollar values. Also, for any column that contains a percentage, you

Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer?

demand for a good is high and the supply is low, the price increases. At some point people’s

I found that many consumers who were with more than one person did complain about prices. They made comments about how they can get the same item at Target or Wal-Mart for a lower price. Those who were out shopping for Christmas presents I found complained more, as if they were hoping for a special deal due to the holiday. One customer I overheard stated, “she is crazy to think I am going to spend $50 on one pair of yoga pants, I’ll go to Target and get a pair for $20 instead.” I did not hear many consumers ask about prices, Victoria’s Secret tags every product with a price, so consumers are aware of the price as they browse.

The greater the demand of a product, the greater the associated value, and hence greater will be price. Price is also dependent upon the supply of a product, the lower the supply, the higher the price. The price of a product is also dependent upon the state of the overall economic conditions. At the time of the recent recession, the ticket prices of matches and merchandise were set at a comparatively lower level than at the time of a boom. (Kotler)

The principal microeconomic issue at work is supply and demand. The author invokes a number of economic theorists (both liberal and conservative) who endorse price gouging out of a belief that it is simply the natural manifestation of a capitalist society that relies on supply and demand. There is a belief that preventing price gouging allows consumers to act with little consequence for their actions. According to this line of thinking, a business is well within its rights to raise prices because they should respond to public demand; at other times, there is little demand, so they are wise to take advantage when there is significant demand. Moreover, economic theorists have argued that price-gouging is positive because it makes people question whether the item they are considering purchasing

Consumers would prefer a fair/constant price or a comparable fair/constant price from a company. Consumers would feel discrimination of buying a product with different prices in a short period in a temperature fluctuation season. For the people often do travel in a short time, they will obviously view the price change in different regions because the temperature changes in different regions. They will feel unfair to find other regions hold lower or higher price than their home town. Meanwhile, the changeable price will confuse the consumer to understand the reason especially the competitor holds the constant price. Consumer would not understand why the price changes so often while the competitor keeps the same price. Distrust might rise up and it will give the good reason that consumers chase for competitors product because of the trust is impaired. It takes a long time to educate and coach consumers to understand the reason of price changes. Even if after education and coach, most of the consumers would not accept the idea because the competitor keeps the constant price. Therefore, from consumer point, we could not see the good reasons of support from consumers. Nevertheless, it has the risk of impairing Coca reputation and influence.

Therefore, Chatime using psychological pricing strategy which is set those ending with nines or other odd numbers on all beverages to stimulate consumer demand and sometimes these are referred to as “just below” prices as they are often “just below” an even price such as RM1.99 vs RM2.00. For example, Chatime instead of charge RM6 for a milk tea beverage you might charge RM5.99 per beverage. Some consumers associate the price closer to RM5 than RM6 even though it is only one cent less and they may subconsciously be partially ignored. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points to get more customers and the psychological pricing method helps Chatime build an impression of the brand without making significant changes to the product. Simply revising the pricing structure can make the product seem like the best on the market compare with other competitors or elevate the Chatime’s milk tea to the top of the available options. Although the price of Chatime’s milk tea is lower than competitors, customers are those who important of quality and price attributes will buy the products too. It is because customers are relatively insensitive to the product price. Customers willing to pay more for own

Quite often, consumers purchase goods and services based on their perceived need. Upon making the decision that a need is present and a solution is available consumers are more equipped to react to that need. Although previously perceived that consumers will normally accept prices as presented by suppliers that remains to not be the case. Consumers assess and process prices based on past purchases and other psychological process they went through previously such as persuasive marketing strategies, accessibility of the goods or services and possibly information gathered from prior purchasers of a product. There are countless options that are available to consumers. Consumers are then faced with the choice of choosing the product that best fulfills their need at that given point. Consumers who are knowledgeable regarding prices will be aware of the approximated price for products (Zhao, Zhao & Deng, 2015).