Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Question

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

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Students have asked these similar questions

Recall your past experiences. Have you been given discounts for goods youbought? When and in what occasion? When do sellers give discount? Give anexample and illustrate how it is computed. Give also an illustration of how selling price is determined.

A study indicated that the optimal price for a consumer product is $32.45. Most products in the market sell for $29.99. What price would you suggest to retailers for selling the product and why? A haute cuisine restaurant is opening down the street, and its owner asks you for advise on pricing. Should you suggest that the restaurant price an appetizer at $6.99 or $7, and why?

Why do marketers use this ‘just-below’ pricing tactic?

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

Answer 6

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

Answer 7

Chapter 15, Problem 1MA

Summary Introduction

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Answer 8

Expert Solution & Answer

Explanation of Solution

Generally, the advantage of this type of cost-based pricing is that it’s comparatively easy to use and assumes that prices won’t vary much. It is called as markup pricing. Under this method retailer adds some markup to standard product cost.

But however, the cost-based pricing method does not taken into consideration of customers and the different roles of the competitors which influences the pricing decisions.

Person X views that, he can do differently by considering the actual demand for the product and he will try to consider the perceived value of customers and the degree of competition prevailed in the market.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 15.1 - Prob. 1PC Ch. 15.1 - Prob. 2PC Ch. 15.3 - Prob. 1PC Ch. 15.3 - Prob. 2PC Ch. 15.5 - Prob. 1PC Ch. 15.5 - Prob. 2PC Ch. 15.6 - Prob. 1PC Ch. 15 - Prob. 1MA Ch. 15 - Prob. 2MA Ch. 15 - Prob. 3MA

Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Concept explainers

To discuss: Role of Person X if he hired as a pricing manager for a drug store chain which adds fixed percentage to its cost to arrive the retail price.

Explanation of Solution

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Chapter 15 Solutions