Price Resistance often surfaces during the negotiation phase of any sale. Firstly, what in your opinion accounts for this phenomenon? Secondly, what will be your approach to negotiating price objections from a customer?
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Price Resistance often surfaces during the negotiation phase of any sale. Firstly, what in your opinion accounts for this phenomenon? Secondly, what will be your approach to negotiating price objections from a customer?
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- For this discussion, use the following hypothetical scenario as the basis for your response: Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Address the following in your discussion post: Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. What degree is this type of price discrimination? How will the plan increase revenue? Why will both groups of customers be satisfied with the deal? Why is this a legal form of pricing?If an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.Suppose a manufacturer of exercise equipment sets a suggested price to the consumer of $395 for a particular piece of equipment to be competitive with similar equipment. The manufacturer sells its equipment to a sporting goods wholesaler who receives 25 percent of the selling price and a retailer who receives 50 percent of the selling price. What demand-oriented pricing approach is being used, and at what price will the manufacturer sell the equipment to the wholesaler?
- A firm wants to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain a marketing manager’s permission to reduce price below a specific threshold. This solution would only work if a) The marketing manager has no information about the matter at hand b) The marketing manager can only get all the information on the case from the sales agent c) Enough unbiased information is transferred to the manager to prevent an unprofitable price reduction d) All of the above Please clearly explain your answerA product is a set of attributes and benefits designed to satisfy its market while earning a profit for its seller. Pricing is an integral part of this equation. What factors must be considered when pricing products and how a price change affects a product's demand and supply?What profit-based pricing approach should a manager use if he or she wants to renect the percentage of the firm"s resources used in obtaining the profit?
- Describe the basic market forces that are relevant to pricing and decision-making for companies. Include the following: What information would you want to have in order to make sound pricing decisions? With financial information, there is often some level of uncertainty and estimation. How would you explain any risk or uncertainty about information to senior management? How would you suggest monitoring and responding to competitors' pricing actions?Once a company determines a base price, a series of price tactics are often offered to help fine-tune the base price to make sure it satisfies the company and customer. List the four basic price tactics and define each one.How likely is the sales manager will be successful in the short term in cut the price as strategy to stimulate interest and convince other business operators to buy products from our company?
- Why are customers typically relatively insensitive to price increases even though they have bargaining power? They do not believe an acceptable alternative exists. They do not believe they are paying more for perceived benefits. They believe that price protects products from counterfeiting. They believe switching costs are high.What are the various pricing strategies available to the marketers who want to introduce a new products in a highly competitive market ?How will the pricing strategy affect the overall marketing mix and customer perception of the product or service?