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?

High-low pricing is a typical retail pricing technique where an item or administration, is…

Answered: Give an example of a product that has a…

Business

Marketing

Give an example of a product that has a price that you find difficult to classify as being high or low. Explain why.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 3SC

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Question

Give an example of a product that has a price that you find difficult to classify as being
high or low. Explain why.
Explain why fine dining establishments must have very high markups over the cost of
their 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? How
do you feel about this?
What advantages can a convenience store chain, such as 7-eleven, have over traditional
sari-sari stores? How about disadvantages?
Give an example of a locally made product that you believe will have a good chance of
competing in a regional market. Explain why.
Give an instance when a customer care person gave you unsatisfactory service. What was
the reason and why do you think it happened? How would you address this situation in
order to prevent it from happening again?

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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).
What is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing? Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?
Many 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?
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.
How can you attack Walmart because of its aggressive pricing actions? Note: By believing that Walmart forced a new kind of shopping experience upon a community and robbed them of a way of shopping they used to have (international hypermarket replacing local independent businesses). You should argue that a way of shopping that has been eliminated from the community by Walmart was a better way of shopping. (give your reasoning for believing that Walmart is wrong).
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give an example of a product that has a price that you find difficult to classify aa being high or low. explain why