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?

A company bases its price on competitors’ current prices. This is a __________ pricing strategy.

Retail Price Comparison * Use U.S. dollars and stores located in the United States To demonstrate the wide variation in pricing of an identical item, visit three different stores online and compare prices on similar items. Please do not just get on Amazon and compare prices there for an item. Actually visit different independent store websites.  It might be really interesting to visit a local store's website and a national store's website, comparing pricing for the same item.    1.  Select a category of store. Some suggestions are: Grocery:   large chain store, local chain store, convenience store Health and beauty aids:   grocery store, drugstore, discount store Over-the-counter drugs:   chain drugstore, local drugstore, discount store Clothing:   specialty store, department store, discount store   2.  Select several items to compare in your category. For example, in the grocery category, you may want to compare a type of cereal, a canned soup, and a snack…

• Identify THREE key Pricing strategies and discuss the importance of understanding customer value perceptions, company costs, and competitor strategies when setting prices. What did you learn about. the factors affecting pricing and products, services, and brands. What did you learn about how companies adjust and change their prices to consider different types of customers and situations, these can just be bullet points or a short narrative. • Pick ONE of these key concepts and summarizes the significance of these in a 1 or 2 paragraph explanation of the strategy. (Including examples if appropriate)

As a marketing manager, you are asked by the company leadership to formulate the right pricing strategy for the company's two TV broadcast programs, namely: (1) Hi-tech(H) program which contains engineering, science and technology; and (2) the Wildlife(W) program which contains adventure, vacation, and flora-fauna. There are at least 2 customer groups targeted by the program: (a) Geeks, and (b) Regular. For each group, the number of customers and their WTP values are presented in the table below. Groups Number of Customers Hi-tech Wildlife Geeks 3000 15 4 Regular 10000 3 8 Assuming that the production cost for the two programs is 0, then:a. Mention 3 pricing strategies that can be applied.b. Calculate the price level and profit earned by each strategy.c. As a manager, which pricing strategy did you choose? State why.

Under what conditions would a camera manufac-turer adopt a skimming price approach for a newproduct? A penetration approach?

13- Sellers of routinely purchased products such as regular bottled water want to distribute the products as widely as possible. These companies will most likely choose  ________ distribution strategy Group of answer choices exclusive selective intensive independent 14- Cable internet providers frequently offer a low introductory offer price to entice customers to sign up for their services. They do so because they have already laid the cable network ahead of customer demand and now must attract customers. These pricing scheme represent a ________ pricing strategy. Group of answer choices sales orientation target return target profit maximizing profits 15- Some pharmaceutical companies spend big bucks to advertise prescription drugs on TV to persuade consumers to ask their doctors about those medicines. The main objective of these ads is to Group of answer choices implement a push strategy offset sales promotion costs implement a pull strategy maximize media…