Concept explainers
a)
Case summary:
Company WG manufactures 4 categories of instruments, such as batch custom, mass produced, one-of-a-kind, and mass customized. It is necessary to set different prices to different categories of instruments to sustain in the business. Person BA, who is the vice president of Company WG, is responsible for setting the price.
The recommended retail cost is $349. Person BA calculates Company WG’s variable and fixed costs to know the break-even point and profit. Profits and break-even points are calculated under different conditions to assess the effects of production facility.
Characters in case:
Company WG
Person BA
Introduction:
Demand refers to the customer’s willingness and ability to pay for a product or service. Keeping the other factors constant, a decrease in the prices of product or service will increase the demand and vice versa.
To determine: The factors that are likely to affect the demand for Company WG for a first-time guitar buyer.
b)
Case summary:
Company WG manufactures 4 categories of instruments, such as batch custom, mass produced, one-of-a-kind, and mass customized. It is necessary to set different prices to different categories of instruments to sustain in the business. Person BA, who is the vice president of Company WG, is responsible for setting the price.
The recommended retail cost is $349. Person BA calculates Company WG’s variable and fixed costs to know the break-even point and profit. Profits and break-even points are calculated under different conditions to assess the effects of production facility.
Characters in case:
Company WG
Person BA
Introduction:
Demand refers to the customer’s willingness and ability to pay for a product or service. Keeping the other factors constant, a decrease in the prices of product or service will increase the demand and vice versa.
To determine: The factors that are likely to affect the demand for a musician, who needs a signature model.
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Chapter 13 Solutions
Marketing
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- Consumers often consider price: Multiple Choice to suggest potential product use. to determine income requirement. to suggest product size. only when short on funds. to suggest product qualityarrow_forwardAdidas combines a bunch of products including sneakers, socks, and sportswear and sets a price for this bundle which is lower than the sum of individual prices of products, this is an example of product-bundle pricing. Select one: O a. False O b. True Starbucks delivers an advertisement in which their traditional Americano Coffee is under the spots, This is an example of reminder advertising. Select one: O a. True Ob. False Next page agearrow_forward1. What are some examples of bundle pricing? 2. What are some other examples of promotional pricing? 3. How does promotional pricing contribute to a business's overall marketing strategy? Please number your responses for each question (1, 2, and 3)arrow_forward
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