3.8. What do you understand by the term ‘customer price sensitivity’? What does it mean when customers are ‘price sensitive’? 3.9. Which communication of price (1 or 2) is more effective in terms of reducing customers’ price sensitivity if they are interested in the menu ‘Cheese & tomato with mushrooms and pepperoni’? Why? 3.10. In communication 1, the seller communicates three price points. In terms of ‘reference price’ concept, why is it better to communicate 3 price points rather than just 2 price points? 3.11. If the restaurant manager decides to bundle pizza and a fizzy drink together for a cheaper price than buying separately, which mechanism for segmented pricing is the restaurant using? Explain your reasoning. 3.12. If the restaurant gives 30% discount for the second tray of pizza bought, which mechanism for segmented pricing is the restaurant using? Explain your reasoning. 3.13. Should the firm give regular discount of 10% every Monday to attract customers? Give your reasoning. Please help answer all of the following parts from 3.8 to 3.13
3.8. What do you understand by the term ‘customer price sensitivity’? What does it mean when customers are ‘price sensitive’?
3.9. Which communication of price (1 or 2) is more effective in terms of reducing customers’
price sensitivity if they are interested in the menu ‘Cheese & tomato with mushrooms and
pepperoni’? Why?
3.10. In communication 1, the seller communicates three price points. In terms of ‘reference price’
concept, why is it better to communicate 3 price points rather than just 2 price points?
3.11. If the restaurant manager decides to bundle pizza and a fizzy drink together for a cheaper
price than buying separately, which mechanism for segmented pricing is the restaurant using?
Explain your reasoning.
3.12. If the restaurant gives 30% discount for the second tray of pizza bought, which mechanism for segmented pricing is the restaurant using? Explain your reasoning.
3.13. Should the firm give regular discount of 10% every Monday to attract customers? Give your reasoning.
Please help answer all of the following parts from 3.8 to 3.13
Step by step
Solved in 3 steps
