Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Why is it so difficult for buyers and sellers to agree on a price for a business?
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- What is the effect of switching costs on the danger of buyer power?arrow_forwardHow can a business that is using "ideal standards" to set prices under a cost-plus method (specifically the Product Cost Concept), actually set the selling prices of their products too low?arrow_forwardFor 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?arrow_forward
- Be prepared to discuss the following, supporting your arguments with biblical principles that apply: How to set prices that are just and fair that allow firms to pay employees well, but still make a profit. How to advertise and promote one’s product/service in a way that truly represents the value/performance of the product/service.arrow_forwardAlthough cannibalization generally forces price cuts, in whatways can it actually benefit a firm?arrow_forwardIn what situations is cost-based pricing most suitable for businesses?arrow_forward
- How can businesses find the perfect balance between profit maximization and customer satisfaction through pricing?arrow_forwardHow do firms use information about price elasticity to predict consumer behavior?arrow_forwardDiscuss the relationship of price to value. Does a low price necessarily mean a better value? Give an example to illustrate your opinion. How can a firm offer good value in a mature market where price seems to be the only visible means of differentiation?arrow_forward
- What is the difference between a direct cost and an indirect cost?arrow_forwardWhich type of online auction, in general, puts upward pressure on bid prices and which puts downward pressure on bid prices?arrow_forwardWhat pricing advantages or disadvantages do companies face in selling their products through online auctions? How do online auctions affect the pricing strategies of other companies? Why?arrow_forward
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