A company has two products. One is moderately priced and has fewer number of competitors. The other product is low-priced and has many substitutes. What is the best advice about pricing that you can give to this company? a. Give discounts to the low-priced items only b. Give discounts to both of these products c. Give discounts for the moderately priced products only d. Do not give discounts for any of these products

A company has two products. One is moderately priced and has fewer number of competitors. The other product is low-priced and has many substitutes. What is the best advice about pricing that you can give to this company? a. Give discounts to the low-priced items only b. Give discounts to both of these products c. Give discounts for the moderately priced products only d. Do not give discounts for any of these products

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter13: Pricing Concepts

Section13.7: Applying Breakeven Analysis

Problem 1LO

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6- A company has two products. One is moderately priced and has fewer number of competitors. The other product is low-priced and has many substitutes. What is the best advice about pricing that you can give to this company? a. Do not give discounts for any of these products b. Give discounts to the low-priced items only c. Give discounts to both of these products d. Give discounts for the moderately priced products only
A9 Let's choose a product, then analyze PRODUCT COMPENENTS (everything customers think about before they purchase), and propose all possible PRICING STRATEGIES that seller can set for the product.
List the general approaches to pricing. Select examples of products that you regularly use. i. Notice the price of each of these items For each item, ii. State the main benefits you are looking for in using the product. iii. Does the price communicate the total benefits sought? iv. Does the product’s price suggest good value? v. Do you think the manufacturer or retailer is overcharging or undercharging consumers for the product?
1. Distinguish between value-based pricing and cost-based pricing 2. Explain the common reasons for the failure of new products. What must be the goals for a company to create successful new products? 3. Differentiate between controlled test markets and simulated test markets for new products
1. Being at the premium end is a category upon itself. Describe the indicators of premiumness or high quality and high price that can apply to most types of products?
Even though some marketing campaigns may result in large expenses, advertisers may argue for pricing justification due to:a.) Guaranteed profitsb.) Reaching diverse target groupsc.) Enforcing traditional marketing strategies & tacticsd.) Providing consumers with extra information regarding products
It is recommendable that the Company uses product and pricing strategy, which can provide a twin approach (Koester, 2011). The strategy should focus on ensuring smooth entry of a new product within a targeted marketplace as well as strengthening prices as the product continue to establish itself within the product life cycle. To this end, it is recommendable that the company uses introductory pricing strategies to facilitate a smooth entry.What is your understanding of this paragraph? What is Nike recommended to do from this?
1. “Pricing is not an end in itself but a means to achieving certain objectives of the marketing department of a firm.” Discuss.
Critical Thinking Some retailers have used decoy pric- ing to increase the number of sales of a higher priced alternative. Describe decoy pricing. What are some products that would be good choices for decoy pric- ing? Is this practice ethical? Why or why not?
1. What are some examples of bundle pricing? 2. What are some other examples of promotional pricing? 3. How does promotional pricing contribute to a business's overall marketing strategy? Please number your responses for each question (1, 2, and 3)
Does "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.
3.Based on the way SBC's brand manager describes its overall pricing strategy across various types of bikes with varying attributes for different types of riders and varying degrees to which those attributes are incorporated, SBC employs Multiple Choice A) product line pricing. B)competitor-based pricing. C) odd/even pricing. D) penetration pricing. high/low pricing.