I badly need help for this one. Please please. Thank you so much.

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
Problem 1.1DQ
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I badly need help for this one. Please please. Thank you so much.

PROBLEM SET #6:
Imagine that you are a budding entrepreneur and decided to start a business in San Juan, La
Union. You are trying to put up a mini restaurant serving delicious and authentic Ilokano
cuisine. Your biggest challenge is the already established competitors within San Juan. With
your knowledge about margins, choose among the two choices provided below and justify your
answer. Choose only one answer.
Choice A: Establish a high gross margin to compensate the high cost production and other
expenses to be incurred in a tourist spot location.
Choice B: Establish a lower gross margin to have an edge (price-wise) with the other
businesses.
Note that your goal is to maximize the use of margins in business to better accommodate the
intended costumers.
Transcribed Image Text:PROBLEM SET #6: Imagine that you are a budding entrepreneur and decided to start a business in San Juan, La Union. You are trying to put up a mini restaurant serving delicious and authentic Ilokano cuisine. Your biggest challenge is the already established competitors within San Juan. With your knowledge about margins, choose among the two choices provided below and justify your answer. Choose only one answer. Choice A: Establish a high gross margin to compensate the high cost production and other expenses to be incurred in a tourist spot location. Choice B: Establish a lower gross margin to have an edge (price-wise) with the other businesses. Note that your goal is to maximize the use of margins in business to better accommodate the intended costumers.
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