Chapter 11_Marketing Reviewer 2

Does "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.

Fancy Fashions sells jeans for $59 and sweaters for $39, To increase sales of jeans and sweaters, Fancy Fashions promotes this Product Price Bundle: "Buy a pair of jeans and a sweater for $98'. Will this Product Price Bundle will work well to increase the sales of jeans and sweaters? Explain your answer in no more than 2 bullet points.

List  the general approaches to pricing. Select examples of products that you regularly use.        i.          Notice the price of each of these items For each item,      ii.          State the main benefits you are looking for in using the product.     iii.          Does the price communicate the total benefits sought?     iv.          Does the product’s price suggest good value?     v. Do you think the manufacturer or retailer is overcharging or         undercharging consumers for the product?

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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?

Consider 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.

What is the main reason for establishing pricing objectives? a. to give direction for price movements over the product life cycle b. to define the initial pricec. to establish a good understanding of the market and the needs of the consumerd. to interact with the other elements of the marketing mix

The cost to produce the shake is relatively low, with total manufacturing costs running about $0.05 per ounce. Each shake is eight ounces. What pricing strategy do you recommend for this product?

What is meant by pricing? Describe any three strategies that can be done by firms if they do not want to increase the price of a product.

Although more than one strategy can achieve profitable results, even within the same industry, nearly all successful pricing strategies embody three principles. They are value-based, proactive, and profit-driven. True or False?

A company bases its price on competitors’ current prices. This is a __________ pricing strategy.

What measurement issue is hedonic pricing meant to fix? Be specific as possible as why as measurements without it can fail to capture what the relevant statistic was designed to capture. How does it work in practice?

Suppose you have been asked by a food company to design an experiment that examines consumers’ purchase intentions toward their product (i.e., cereals), as a result of their recent pricing strategies (i.e., low price, high price) and product quality (i.e., organic offerings, nonorganic offerings) strategies. Basically, they would like to know the best combination of product quality offering and pricing strategy that yields the highest levels of consumers’ purchase intentions. How would this experiment look like? When working on this assignment, you should consider the following: Subjects: The experiment participants should be customers who consume significant breakfast cereals and are diverse in terms of income group, age group and work type. Experimental conditions: Independent variables – quality (categorical), price Dependent variable – Propensity to pay Effects: The main effect shall be impact of independent variables on propensity to pay such as how much affect does quality or…

company sends people to shop at similar retailers to make sure it is charging comparable prices. What pricing strategy does company employ? A. Market Penetration B. Price Skimming C. Going Rate D. Loss Leader

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.

Adidas combines a bunch of products including sneakers, socks, and sportswear and sets a price for this bundle which is lower than the sum of individual prices of products, this is an example of product-bundle pricing. Select one: O a. False O b. True Starbucks delivers an advertisement in which their traditional Americano Coffee is under the spots, This is an example of reminder advertising. Select one: O a. True Ob. False Next page age

Value-based pricing is the reverse process of Select one: O a. good-value pricing b. cost-based pricing c. cost-plus pricing d. variable cost pricing

A retailer wants to understand the relationship between the sales units (in number of units) of a new product and its price. Now, which types of model can be considered to answer the above firm issue?

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?

Week 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? Explain.

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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.

Which of these is an accurate observation about pricing in today's business environment? A) The internet empowered buyers but doesn't help resellers optimize their pricing. B) Across industries and regions, most companies now use the same pricing methods. C) Many companies do not handle pricing well and fall back on familiar methods that aren't as effective as they should be. D) With ubiquitous online price matching, pricing decisions are more or less automatic these days. E) The hope of offering personalized price promotions hasn't really panned out.

Gillette’s pricing scheme is to sell razor handles at a relatively low price and razor blades at a relatively high price. This practice is known as: Group of answer choices predation. retail maintenance. leverage. tying.

"Belle's Boutique starts off clothing full price for 4 weeks, discounts it to 25% of for 2 weeks, discounts it to 50% off for 2 more weeks, and then marks it down to below cost. Belle's Boutique uses a _________ strategy for pricing.      high-low     everyday low pricing     skimming     status quo     competitive parity

Give an example of a product that has a price that you find difficult to classify as beinghigh or low. Explain why. Explain why fine dining establishments must have very high markups over the cost oftheir foods. Is it possible to be a low-priced fine dining establishment? Should a distributor get a higher margin on a product’s sale than the manufacturer? Howdo you feel about this? What advantages can a convenience store chain, such as 7-eleven, have over traditionalsari-sari stores? How about disadvantages? Give an example of a locally made product that you believe will have a good chance ofcompeting in a regional market. Explain why. Give an instance when a customer care person gave you unsatisfactory service. What wasthe reason and why do you think it happened? How would you address this situation inorder to prevent it from happening again?