kercises 1. McDonald's sells Happy Meals for as low as $2.50 and Value Meals for as high as $5.50. How would you describe this pricing strategy? What segmentation variables are being used? 2. Many firms offer a "Buy 4, Get 1 Free" card to encourage customer loyalty. a. What are the price segmentation concepts that support such an offer? b. Which of the following types of firms is most likely to find a "Buy 4, Get 1 Free" offer to increase unit sales, and why? Gift card shop, coffee shop, hair salon, hardware store. 3. Both Best Buy and Dell.com have offered a Memorial Day sale on personal computers. Which computer outlet is likely to attract more customers with the Memorial Day sale and why do you make this claim? 4. Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21. Assume that there is 0.355 liter per beer in a multipack. a. On a cost-per-liter level, which offers customers the best price? b. In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind of price segmentation is being used? c. In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price segmentation is being used? d. Which psychological effects might drive customers to purchase a 5-liter keg? 5. An industrial firm has been offering a single standard flat price. The sales team has requested that the firm offer discounts to a select group of customers. In constructing the discounting policy, the pricing manager decides to consider changing the standard price as well. Should the standard price remain the same, be lowered, or be raised in the presence of discounting based upon the information given and nothing more?
kercises 1. McDonald's sells Happy Meals for as low as $2.50 and Value Meals for as high as $5.50. How would you describe this pricing strategy? What segmentation variables are being used? 2. Many firms offer a "Buy 4, Get 1 Free" card to encourage customer loyalty. a. What are the price segmentation concepts that support such an offer? b. Which of the following types of firms is most likely to find a "Buy 4, Get 1 Free" offer to increase unit sales, and why? Gift card shop, coffee shop, hair salon, hardware store. 3. Both Best Buy and Dell.com have offered a Memorial Day sale on personal computers. Which computer outlet is likely to attract more customers with the Memorial Day sale and why do you make this claim? 4. Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21. Assume that there is 0.355 liter per beer in a multipack. a. On a cost-per-liter level, which offers customers the best price? b. In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind of price segmentation is being used? c. In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price segmentation is being used? d. Which psychological effects might drive customers to purchase a 5-liter keg? 5. An industrial firm has been offering a single standard flat price. The sales team has requested that the firm offer discounts to a select group of customers. In constructing the discounting policy, the pricing manager decides to consider changing the standard price as well. Should the standard price remain the same, be lowered, or be raised in the presence of discounting based upon the information given and nothing more?
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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Transcribed Image Text:Exercises
1. McDonald's sells Happy Meals for as low as $2.50 and Value Meals for as high as
$5.50. How would you describe this pricing strategy? What segmentation variables
are being used?
2. Many firms offer a "Buy 4, Get 1 Free" card to encourage customer loyalty.
a. What are the price segmentation concepts that support such an offer?
b. Which of the following types of firms is most likely to find a "Buy 4, Get 1
Free" offer to increase unit sales, and why? Gift card shop, coffee shop, hair
salon, hardware store.
3. Both Best Buy and Dell.com have offered a Memorial Day sale on personal
computers. Which computer outlet is likely to attract more customers with the
Memorial Day sale and why do you make this claim?
4. Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini-
kegs for $21. Assume that there is 0.355 liter per beer in a multipack.
a. On a cost-per-liter level, which offers customers the best price?
b. In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind
of price segmentation is being used?
c. In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price
segmentation is being used?
d. Which psychological effects might drive customers to purchase a 5-liter keg?
5. An industrial firm has been offering a single standard flat price. The sales team
has requested that the firm offer discounts to a select group of customers. In
constructing the discounting policy, the pricing manager decides to consider
changing the standard price as well. Should the standard price remain the same, be
lowered, or be raised in the presence of discounting based upon the information
given and nothing more?
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