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How would you determine whether a firm’s retail prices are above, at, or below the market?
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- How is the information provided by shadow prices clearly valuable to management?Look at some real estate want ads in your newspaper. Enter the price of a two-bedroom home and a three-bedroom home. If you find some abbreviations you do not understand, ask your teacher.Assume you are considering opening a retail business. You are trying to decide whether to have a traditional “brick-and-mortar” store or to sell only online. Explain how the activities and costs differ between these two retail arrangements.
- Your management has requested you to suggest different types of food retailers for new retail investment. Based on any THREE (3) different types of food retailers of your choice, evaluate their characteristics in reference to (1) the size of stores, (2) the variety and assortment of the merchandise, and (3) the pricing method.Some high-fashion retailers, notably H&M and Zara, sell what some call“disposable fashion”—apparel priced so reasonably low that it can bedisposed of after just a few wearings. Here is your dilemma: You havean important job interview and need a new suit. You can buy the suit atone of these stores for $129 or at Brooks Brothers for $500. Of course,the Brooks Brothers suit is of higher quality and will therefore lastlonger. How would you use the two value-based approaches describedin this chapter to determine which suit to buy?When shopping for a new car, which of the following should be the first step in the buying process? Calculate how much you can afford. Shop for a loan. Determine your transportation need. Obtain an estimate for auto insurance.
- In your textbook on page 387, the authors engage in a brief discussion on why consumers may choose to pay $300 for a pair of Tiffany pearls which come in a fancy blue box versus another nameless pair which can be purchased from Pearl World for $43 and on Amazon for $19. 1. Share with your colleagues an experience you had when faced with the decision of choosing between a name brand and generic item. 2. In your general shopping experiences or given your general purchasing behavior, does name brand recognition matter to you? Why or why not.What elements are consumers likely to consider when evaluating the purchase price of a product they want to own compared with the price of renting that product for a limited time?Assume your company makes Laptop and Computer products. Make a list of all the companies that could be potential customers of your firm. Then identify all the markets from which their demand is derived. What factors might influence the success or failure of your business in these markets?
- What are the differences in prices for the same product from one store to another?If a merchandising company has a beginning inventory of $400,000 and an ending inventory of$200,000, and the company purchased $1,600,000 of inventory during the month, what is the company’s cost of goods sold?If you could buy a product from a website or a store right down the street and the prices were the same, where would you make your purchase? Why?