M: Marketing
5th Edition
ISBN: 9781259446290
Author: Dhruv Grewal Professor, Michael Levy
Publisher: McGraw-Hill Education
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Question
Chapter 1.2, Problem 1CY
Summary Introduction
To determine: Does selling at low cost signifies providing good value.
Introduction: Marketing is an art in which a seller sells his goods and services to his customer. Marketing has important four elements which are price, place, product and promotion.
Expert Solution & Answer
Explanation of Solution
Does selling at low cost signifies providing good value?
- It cannot be said that selling at a low price signifies good value. Since the manufacturer has to take a reasonable price from the customer along the good quality product. If a producer is not able to meet the needs and wants of the customer, the customer would not like to purchase goods and services from the customer.
- If the producer sales its goods at a low price and is not able to recover the cost of the goods, produce will not produce that good.
- But if the producer produces a good quality product, the producer should try to cover the product cost so that the producer can carry on its production of good quality.
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- How can patterns of temporary price discounts “train” consumers to stop buying at full price?arrow_forwardExplain a banking account offering to a young adult who has just started their first job? Explain a banking account offering to a married couple in their mid-thirties investigating different options:arrow_forwardSome high-fashion retailers, notably H&M and Zara, sell what some call“disposable fashion”—apparel priced so reasonably low that it can bedisposed of after just a few wearings. Here is your dilemma: You havean important job interview and need a new suit. You can buy the suit atone of these stores for $129 or at Brooks Brothers for $500. Of course,the Brooks Brothers suit is of higher quality and will therefore lastlonger. How would you use the two value-based approaches describedin this chapter to determine which suit to buy?arrow_forward
- Consider two products with the same cost but different margins. Which product should have higher customer service level? Why?arrow_forwardIf your customers can see the value of buying your product or service, they'll happily pay the price. If they don't see that value, it makes little difference how low you set your price, the customer will look somewhere else for the perceived value, even if "somewhere else" costs more than your product or service. True or False?arrow_forwardLook at some real estate want ads in your newspaper. Enter the price of a two-bedroom home and a three-bedroom home. If you find some abbreviations you do not understand, ask your teacher.arrow_forward
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