Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
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Chapter 9, Problem 9.16VC
Summary Introduction
Case summary:
There appears a battle between the food chain stores like Restaurants W, MC, BK and other competitors are enormously trying to trap their consumers with low price tempting meals. Though this technique is not new it is more popular than ever before. This method helped other restaurants like Restaurant OG.
Characters in the case:
- Restaurant W, MC, BK
- Restaurant OG
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.
To determine: The reason why the restaurant chain employs a discount menu for the option pricing.
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Chapter 9 Solutions
Marketing: An Introduction (13th Edition)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Identify two stores at which you shop, one of which uses everyday lowpricing and another that uses a high/low pricing strategy. Do youbelieve that each store’s chosen strategy is appropriate for the type ofmerchandise it sells and the market of customers to whom it isappealing? Justify your answer.arrow_forwardDollarama stores focus on serving buyers who have relatively modest means. This is an example of aconveniencebvalue pricingcmarket segmentationdtarget marketingarrow_forwardThe cost of doing business and establishing retail pricing are directly related to a business's bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2. Why do you believe that to be the case? 3. Why is it important that a company's pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).arrow_forward
- The cost of doing business and establishing retail pricing are directly related to a business’s bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2.Why do you believe that to be the case? 3. Why is it important that a company’s pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).arrow_forwardwhy penetration pricing is more advantageous for the entrepreneur?arrow_forwardYour management has requested you to suggest different types of food retailers for new retail investment. Based on any THREE (3) different types of food retailers of your choice, evaluate their characteristics in reference to (1) the size of stores, (2) the variety and assortment of the merchandise, and (3) the pricing method.arrow_forward
- Penetration pricing and price skimming are marketing strategies commonly implemented when companies launch new products or services. Both approaches have worked for businesses, but you have to understand how your price relates to your overall marketing and promotions strategies. Penetration pricing relies on a low upfront price to attract customers, while skimming is the use of high upfront prices to maximize short-term profits from the most eager and interested customers. Compare and contrast market skimming and market penetration pricing with the help of above definitions. Discuss how companies adjust their prices to take into account different types of customers and situations?arrow_forwardSuppose you have been hired as the pricing manager for a drugstorechain that typically adds a fixed percentage onto the cost of eachproduct to arrive at the retail price. Evaluate this technique. What wouldyou do differently?arrow_forwardThinking about the hotel industry, I'm wondering does the hotels use long run pricing or short run pricing in business?arrow_forward
- Please solve Fast i give 2 like Regarding resale price maintenance, draw a graph and explain how displaying and showing your firm's shoes to customers by the competitive retailers affect the market. Explain how these strategies affect your firm and the retailers. Explain if the retailers make zero profits.arrow_forwardWhat is psychological pricing, and how is it used by sellers? Give an example.arrow_forwardSome 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_forward
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