MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
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Chapter 15, Problem 5MA
Summary Introduction
To discuss: Reason that firm’s marketers have employed skimming pricing strategy for a newly developed electronic devices.
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- Almost every time a new-to-the-world electronic device (MP3 player,flat-screen television, digital camera, gaming console, etc.) has beenintroduced, the firm’s marketers have employed a price skimmingstrategy. Why?arrow_forwardMany successful retailers use a loss leader pricing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their store and that they will make a profit in the long run. Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practices should be made illegal, as some states have done? How is this different from bait-and-switch pricing?arrow_forwardOne of the easiest places to see the impact of the Internet on marketing is by looking at its effect on pricing decisions and consumer's perceptions of prices. Since its inception, the World Wide Web (WWW) has developed the reputation as being the place to shop to get the lowest prices. Why has this reputation developed? Why might it be possible to charge lower prices online? Are products really cheaper? To answer this last question, choose two products and find them for sale online (books, CD's, and software work very well). Calculate the total price that would be charged to your credit card, then go to a "brick and mortar" retailer and find prices for the same product there. Make your comparisons. Where is the cheapest place to buy the products that you have selected? What costs go into determining which place you buy your product? Are there any non-financial costs to shopping online? To off-line shopping?arrow_forward
- Toy'r'us Discuss buyer reactions to pricing strategies employed in the toy retailing industry. How can you explain this reactions?arrow_forwardWhat is psychological pricing, and how is it used by sellers? Give an example.arrow_forwardDoes "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forward
- Prices can vary depending on many factors including the market andnovelty. Etsy allows anyone to sell goods that they’ve made in its onlinemarketplace. Go to www.etsy.com to learn more about Etsy. Then,search its sellers’ shops to find an item in which you are interested.Now, go to www.amazon.com and search for a similar item. DoesAmazon offer the same or similar product? Are there price differencesbetween Etsy and Amazon? How do Etsy and Amazon communicatevalue?arrow_forwardhttps://www.bartleby.com/questions-and-answers/which-factors-indicate-the-possible-lowest-and-the-highest-price-that-can-be-set-on-a-product-a.-the/418c3500-9ce5-4f7b-aa33-3a4889e7b62b WHICH FACTORS INDICATE THE POSSIBLE LOWEST AND THE HIGHEST PRICE THAT CAN BE SET ON A PRODUCT? a. THE NEWNESS OF A PRODUCT AND ITS AVAILABILITY b. FIXED COSTS AND CUSTOMER'S PERCEPTION c. COMPETITORS' PRICES d. THE DEMAND FUNCTION e. NONE OF THESEarrow_forwardWeek after week, consumers shop for many of the same groceries. At some point, the product may be priced the same and look the same as before but with less in the package. If consumers are not made aware of the change, is this deception? Is this different from deceptive pricing? Over the past several years, careful shoppers may be spending about the same amount of money at the grocery store but leaving the store with a lighter load in their grocery bags. Food prices on many items have increased, and food manufacturers are facing the same challenges as consumers. With increases in raw materials and transportation, making a profit requires a very sharp pencil. According to Phil Lempert, editor of SupermarketGuru.com, “The reality is, if you look at USDA projections, food is going to get more expensive. And as a result, food companies are going to do one of two or three things: Raise prices and keep packages the same, or reduce the quantity in the package. Or do a little of…arrow_forward
- Discuss the relationship of price to value. Does a low price necessarily mean a better value? Give an example to illustrate your opinion. How can a firm offer good value in a mature market where price seems to be the only visible means of differentiation?arrow_forwardCan a producer of a popular low-cost or budget items effectively penetrate the high-end market? Give an example of a popular low-cost brand. What will it take for this to successfully move toward the high-end market? Conversely, identify a well-known premium-only brand. Identify the price point at which its products sell. Assume that you are to offer new mid-priced products under this brand. What will it take to successfully move this brand toward the mid-point of the market?arrow_forwardIt is recommendable that the Company uses product and pricing strategy, which can provide a twin approach (Koester, 2011). The strategy should focus on ensuring smooth entry of a new product within a targeted marketplace as well as strengthening prices as the product continue to establish itself within the product life cycle. To this end, it is recommendable that the company uses introductory pricing strategies to facilitate a smooth entry.What is your understanding of this paragraph? What is Nike recommended to do from this?arrow_forward
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