Concept explainers
Pricing Scenario: You just won a new laptop in a contest, and you decide to sell your old one. You do not have a lot of money and want to get the highest price possible for your old laptop. It is a Mac that you bought brand new last year. You are listing the laptop online, and you need to identify the price
What price would you list your laptop for?
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Laptop Scenario:
Explain why the price you proposed would maximize your revenue using the principles of
why the chosen price proposed would maximize the revenue?
Laptop Scenario:
Explain why the price you proposed would maximize your revenue using the principles of
why the chosen price proposed would maximize the revenue?
- The pricing strategies of car dealers and airlines are somewhat unique and are examples of variable pricing. Unlike the price of most goods that remain static for some period of time, these two are example of pricing that fluctuates constantly. Two people may pay different prices for a car or an airline ticket on the same day. Please read the two articles below and answer the following questions in a short few paragraphs. How do the two differ in strategy and what drives this difference? Find an example of another good or service that is priced like automobiles or airline seats and explain the process. https://www.nerdwallet.com/blog/loans/dealers-set-car-prices/ https://www.farecompare.com/travel-advice/understanding-airline-ticket-prices-why-your-seatmates-airfare-cost-more-or-less-than-yours/arrow_forwardThe Dunkin' Donuts (DD) mobile app lets you Order-on-the-Go. You simply select the beverages and food items you want to purchase and place your order when you are ready to pick it up. Payment is automatically deducted from your registered DD card. Dunkin' Donuts implemented this service in hopes of increasing the frequency of visits per customer by leveraging which pricing consideration: Separation in method of payment Ease /difficulty in product comparison Separation between buyer and payor Price/quality inferencearrow_forwardThe terms shadow price and reduced cost mean the same thing. Your answer: True O False Clear answerarrow_forward
- the challenge with using this pricing scheme is determining an accurate relationship between the price per unit and the quantity demanded. a. market-based pricing b. cost plus pricing c. percentage of mark-up d. target costingarrow_forwardPricing is a critical component of any company’s strategy. Discuss some of the pricing strategies that a company might employ under various circumstances. Examples are allowable, following your discussion of the strategies. Ensure that you also discuss: Fixed and variable costs The nature of demand Economies of Scalearrow_forwardUniversal Appliance prices its refrigerators at five distinct price levels based on finish, style, capacity, and features. They range from $799 to $9,500! This is an illustration of price steps. True Falsearrow_forward
- Because market and operating conditions are different in each target market all consumers will react similarly to the firm's pricing strategy. the choice of a pricing strategy is not specific to the target market. prices need to be held constant because everything else is changing. only horizontal price fixing should be used. none of the above.arrow_forwardUsing companies Coca Cola and Sara Lee, look at all of the social media platforms these companies use (e.g., Instagram, Twitter, and YouTube). Analyze what is being said about pricing either by the company or customers on these platforms, using the following questions. Answer the questions below. How much is pricing discussed? Provide specific examples. Is pricing mentioned by the company, social media users, or both? Is pricing discussed on social media by one company more than the other? If so, why do you think this is? If you worked in marketing for either firm, is there anything you have read on social media that would make you consider changing the price of that company’s products? Explain your answer.arrow_forwardWhen you exit an arrivals terminal at an airport, you're greeted by a lineup of cars with drivers ready to take you to whatever destination you choose. While it's tempting to hop into one, telling the driver to take you to your destination at full price, if you instead walk to the far end of the terminal, wait in a line, and then wait for a car to arrive, you'll pay a significantly lower price. What hurdle must you clear to get this discount? haggling fluctuating prices inconvenience alternative versionsarrow_forward
- You purchased a mechanical keyboard for P45 and plan to resell it for P63. What would the markup rate on this keyboard be?arrow_forwardWhen meat is processed for human consumption , a secondary product is derived which can be used as pet food . So the manufacturer can sell it in market to recover some of his expenses say transportation and storage costs This is an example for which type of pricingarrow_forward
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