MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 15, Problem 11MA
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To discuss: Opinion of Person X on the given situation.
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- Some 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_forwardYou are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee.The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price increase strategies that address your concerns. ( Maximum 250 words)arrow_forwardYou are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee. The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price increase strategies that address your concerns.arrow_forward
- Think about starting a career in the field of selling computer gear. You believe that recently graduated college students have the most potential for sales of mainframe computers, supercomputers, or high-volume storage solutions. Why? Which of the following do not constitute advantages associated with working in the computer hardware sales industry?arrow_forwardSuppose the president of a carpet manufacturing firm has asked you to look into the possibility of bypassing the firm’s wholesalers (who sell to car- pet, department, and furniture stores) and selling direct to these stores. What caution would you voice on this matter, and what type of information would you gather before making this decision?arrow_forwardConsider the advertisement for a gutter cleaning service shown below. What is the external reference price in this ad? According to the course material, an advertisement could attempt to frame a price as a single loss, as two losses, as a gain and a loss, or as a gain foregone. Which one of those framings is this advertisement attempting to accomplish? Explain your reasoning. If your internal reference price for gutter cleaning service was $125, how would you perceive this advertised price of the company’s gutter cleaning service? Would you perceive it as a single loss, as two losses, as a gain and a loss, or as a gain foregone? Explain your reasoning.arrow_forward
- Look 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_forwardYou are a salesperson in an electronics company. At a recent trade exhibition, you met a supplier that was willing to supply your company with a product on an exclusive basis(i.e. available to your company only) that you could offer in your marketplace.The product in question has already been successfully developed and tested and – as yet – is not being sold on the market.You know from speaking to your customers, that there is demand for such a product and it would clearly plug a gap in your company’s product portfolio and give your company a significant competitive advantage.You approach the product management division with your idea and to your surprise, they are very unenthusiastic and reject your idea, stating “We always develop our own products in-house in this department – it would cost the company far too much to set up the processes to buy in a product from outside.”…arrow_forwardYou are a salesperson in an electronics company. At a recent trade exhibition, you met a supplier that was willing to supply your company with a product on an exclusive basis(i.e. available to your company only) that you could offer in your marketplace.The product in question has already been successfully developed and tested and – as yet – is not being sold on the market.You know from speaking to your customers, that there is demand for such a product and it would clearly plug a gap in your company’s product portfolio and give your company a significant competitive advantage.You approach the product management division with your idea and to your surprise, they are very unenthusiastic and reject your idea, stating “We always develop our own products in-house in this department – it would cost the company far too much to set up the processes to buy in a product from outside.” a) Outline the possible range of reasons for the product management division’s rejection of your idea.arrow_forward
- In our modern world, in which fewer people carry actual cash, what benefit to the seller does a cash discount carry? Why? Discuss the benefit to the sellerExplain why it is a benefitarrow_forwardWhat is the difference between a buy order and a purchase requisition?arrow_forwardAssume you are considering opening a retail business. You are trying to decide whether to have a traditional “brick-and-mortar” store or to sell only online. Explain how the activities and costs differ between these two retail arrangements.arrow_forward
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