Briefly explain each of the following types of pricing strategy, and give an example of a good or service that is sold using that pricing strategy. Block pricing. Two-part pricing. Multi-period pricing.
Q: Resorts give discounts to individuals who book in advance and stay over a weekend. Individuals who…
A: First case: Discounts to individuals who book in advance and stay over a weekend. In this, a…
Q: What factors contribute to the advantage and disadvantage of various pricing strategies?
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Q: Write notes on Penetrating pricing.
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Q: Resorts give discounts to individuals who book in advance and stay over a weekend. Individuals who…
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Q: What is the difference between bundle pricing and random pricing?
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Q: what is an example of parallel pricing ?
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Q: Resorts give discounts to individuals who book in advance and stay over a weekend. Individuals who…
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Q: Briefly explain each of the following types of pricing strategy, and give an example of a good or…
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Q: Describe how marketersclassify products
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- Briefly explain each of the following types of
pricing strategy, and give an example of a good or service that is sold using that pricing strategy.
- Block pricing.
- Two-part pricing.
- Multi-period pricing.
- Loss leading.
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- Briefly explain each of the following types of pricing strategy, and give an example of a good or service that is sold using that pricing strategy. bundling loss leadingList and explain the three kinds of pricing methods. Give an advantage and a disadvantage for each method.What is the difference between bundle pricing and random pricing?
- In one paragraph, explain the pricing factor of competitor pricing. Why does what the competitors charge affect pricing? Consider that some companies charge more or less as the competition for the same product.What is price discrimination?Briefly explain the first,second,and third degree price discrimination.Write notes on Penetrating pricing.
- Please read the following article from The Atlantic on the proliferation of price discrimination for online shopping https://goo.gl/EGFynW A.) The article notes that we are moving toward a situation in which perfect price discrimination is no longer “only a classroom thought experiment.” Suppose perfect price discrimination were to become a reality. What would this imply as far as consumer surplus, producer surplus, and market surplus in the market for online retail? B.) The article references a study showing that by using big data online firms are able to boost profits. When firms engage in price discrimination and experience an increase in profits, does this imply that consumers are made worse off as a result? Explain. C.) Do you agree with the author’s belief that the proliferation of price discrimination “makes suckers of us all”? Explain. D.) Do you consider the increased price discrimination in recent years as a net positive or a net negative to society? ExplainNile.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Nile.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount. Group A Group B (sales per week) (sales per week) Volume of sales before the 10% discount 1.55 million 1.50 million Volume of sales after the 10% discount 1.65 million 1.70 million Suppose Nile.com knows which group each customer belongs to when he or she logs on and can choose whether or not to offer the 10% discount. If Nile.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?Shell has over 13,000 gas stations in the United States. In addition to gasoline, the gas stations also sell convenience items, such as snacks, non-alcoholic beverages, wine, beer, and hot food. Suppose you work for a gas station and your boss asks you to develop a pricing strategy for bottled local wine. The demand function is ? = 100 – 4?, where ? is the monthly quantity demanded of the bottled wine and ? is the price of the bottled wine. The marginal cost per bottle of wine is $5. Complete the following tasks: 1) (Calculating) In the worksheet “Q2 Calculations” of the provided Excel file, enter formulas in columns B-D to calculate Q (quantity demanded), MC (marginal cost), and MR (marginal revenue). Please round your results to one decimal place. Note that the inverse demand function is ? = 25 − 0.25? and that the MR function can be derived from the inverse demand function using the formula introduced in Module 5. You may find it helpful to review the Excel file for Chapter 11.
- From the following graph, show the equilibriums under each scenario. Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D.Caroline and Frances are debating the pricing strategy of several airlines. Caroline argues, “When airlines restrict discounted tickets to people who book well in advance and stay over on a Saturday, it is not price discrimination, because the restrictions have nothing to do with individual buyers' willingness to pay.” However, Frances says, “The airlines' stay-over restrictions are a form of price discrimination, because they roughly split the market into two separate groups that are willing to pay two different amounts.” Economists generally agree with who?What is a two-part tariff? Why do firms sometimes use them? What is an example of a firm that uses a two-part tariff as part of its pricing strategy?