Marketing
14th Edition
ISBN: 9781259924040
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
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Question
Chapter 14.4, Problem 14.6LR
Summary Introduction
To determine: The reason for the seller selecting a dynamic pricing policy rather than the fixed-price policy.
Introduction:
The method that is adopted by the firm to fix the selling price is known as pricing. The pricing generally depends on the average cost and the perceived value of the product.
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If an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.
Discuss the advantages of fixed-price policy on the part of customer and marketer.
How does bundle pricing impact consumer purchasing behavior and overall market efficiency compared to individual item pricing?
Chapter 14 Solutions
Marketing
Ch. 14.1 - Prob. 14.1LOCh. 14.1 - Prob. 14.1LRCh. 14.1 - Prob. 14.2LRCh. 14.1 - Prob. 14.3LRCh. 14.1 - Prob. 14.4LRCh. 14.1 - Prob. 14.5LRCh. 14.2 - Prob. 14.2LOCh. 14.3 - Prob. 14.3LOCh. 14.4 - Prob. 14.4LOCh. 14.4 - Prob. 14.6LR
Ch. 14.4 - Prob. 14.7LRCh. 14.4 - Prob. 14.8LRCh. 14 - Prob. 1AMKCh. 14 - Prob. 2AMKCh. 14 - Prob. 3AMKCh. 14 - The Hesper Corporation is a leading manufacturer...Ch. 14 - Prob. 5AMKCh. 14 - Prob. 6AMKCh. 14 - Prob. 7AMKCh. 14 - Prob. 8AMKCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 5VC
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- What is price elasticity? Why is it important for marketers to consider price elasticity when making pricing decisions?arrow_forwardWhy is finding and implementing the right pricing strategy critical to a company’s success?arrow_forwardExplain 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_forward
- How is value-of-service pricing calculated? Is this price strategy still applicable today?arrow_forwardThink about the last time you went to a shop, and consider how many different products there were to choose from, all of which have different prices Explain how pricing affects you as a consumer. Include the following details: An example of a time when you were faced with two identical or similar options and chose the cheaper option and explain why; If there are any products or services you feel you cannot compromise on price for, and why or why not; and How pricing affects your satisfaction with a product or service.arrow_forwardA product is a set of attributes and benefits designed to satisfy its market while earning a profit for its seller. Pricing is an integral part of this equation. What factors must be considered when pricing products and how a price change affects a product's demand and supply?arrow_forward
- In terms of pricing principles, why do rental companies often display the retail price alongside the rental price for products they feature?arrow_forwardMany organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to critically discuss the advantages and disadvantages of the following methods: Should include critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you propose to adopt Market based transfer prices; Full cost transfer prices; Marginal/variable cost transfer prices; Cost-plus a mark-up transfer prices; and 5) Negotiated transfer prices.arrow_forwardHow can a business' pricing decisions be affected by the government's actions?arrow_forward
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