MARKETING:REAL PEOPLE,REAL CHOICES
10th Edition
ISBN: 9780135199893
Author: Solomon
Publisher: RENT PEARS
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Chapter 10, Problem 9QA
Summary Introduction
To explain: The appropriateness of skimming price in case of new products, cases where penetration pricing and trial pricing strategy are the best.
Introduction:There are a good number of pricing strategies which marketers follow as per the suitability and requirement. Different strategies can be implemented for different products.
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Students have asked these similar questions
For new products, when is skimming pricing more appropriate, and when is penetration pricing the best strategy? When would trial pricing be an effective pricing strategy?
How can organizations balance the competing demands of different pricing objectives, such as profit maximization and sustainability goals, and what are the trade-offs involved in adopting different pricing strategies?
What role does customer behavior and market demand play in pricing decisions, and how can organizations leverage data and analytics to optimize pricing decisions?
How can organizations effectively communicate their pricing strategies to customers and stakeholders, and how can they build trust and loyalty with customers while also achieving their business goals?
Choose a consumer product with which you are familiar. For that product, discuss its pricing strategy. What other strategies could work for that product? Did the company use cost-plus, full-cost, or incremental cost in its strategy?
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MARKETING:REAL PEOPLE,REAL CHOICES
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Why is competitive pricing risky for marketers?arrow_forwardDoes "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forwardHow does the target cost method differ from the cost-plus pricing method? Which would you prefer? Are there any other pricing methods that are appealing to you?arrow_forward
- Explain how a firm can increase its profit by price discriminating. How does it determine optimal prices? How does the existence of substitute products affect the firm’s pricing policy?arrow_forwardWhat is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing? Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?arrow_forwardWhat is Bait Pricing?arrow_forward
- How does cost-plus pricing strategy affect the company's performance and how they benefit from this?arrow_forwardDescribe price skimming and penetration pricing. What types of new products would be best suited to price skimming? What types of products will be most successful with penetration pricing?arrow_forwardWhat does ͞price mean and what are the objectives of pricing? What is the pricing procedure? What does it consist? What must be considered first before setting the price? What are the various approaches to pricing? What is the purpose of ͞target rate of return pricing? What is ͞odd-numbered pricing͟? What are the reasons behind this method? What are price adaptation strategies? Why are discounts given to customers? What is the degree of control over price by the seller in a monopsony? Why is this so?arrow_forward
- What type of pricing strategy does Trader Joe's appear to use. Pick only one and explain why. Trader Joe’s value equation is essentially low prices on unique, “gourmet” food items. Describe how Trader Joe's product choice and pricing (as seen online) execute this Good-value pricing strategy. What decisions about product, place, and promotion help Trader Joe's ability to offer such special items at such a low price? How does Trader Joe’s demonstrate the importance of price in creating value for customers?arrow_forwardYou have recently been appointed as the Marketing Manager of a Dog Grooming Business. The leadership team has asked you to ‘price’ a new service – a ‘Mobile’ Dog Grooming service. Explain, with examples, the five factors you should take into consideration when developing a pricing strategy?arrow_forwardMarketers may choose from various pricing strategies when selling a product or service. a) Identify and briefly explain five pricing strategies. b) What factors should be considered before selecting the best pricing strategy?arrow_forward
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