Creative Homework/Short Project. As a director of purchasing for a firm thatmanufacru.res motorcycles. you have been notified that the price of animportant part used in the manufacture of the bikes has nearly doubled from$100 to nearly $200. You see your company having three choices: buying thepart and passing the cost on to the customer by increasing your price; buyingthe pa.rt and absorbing the increase in cost, keeping the price of your bikesthe same; or buying a lower-priced part that will be of lower quality. Preparea list of pros and cons for each aJternative. Then ex.plain your recommenda·cion and justification for it.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Creative Homework/Short Project. As a director of purchasing for a firm that
manufacru.res motorcycles. you have been notified that the price of an
important part used in the manufacture of the bikes has nearly doubled from
$100 to nearly $200. You see your company having three choices: buying the
part and passing the cost on to the customer by increasing your price; buying
the pa.rt and absorbing the increase in cost, keeping the price of your bikes
the same; or buying a lower-priced part that will be of lower quality. Prepare
a list of pros and cons for each aJternative. Then ex.plain your recommenda·
cion and justification for it.

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