Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21. Assume that there is 0.355 liter per beer in a multipack. On a cost-per-liter level, which offers customers the best price? In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind of price segmentation is being used? In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price segmentation is being used? Which psychological effects might drive customers to purchase a 5-liter keg?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter2: The Purchasing Process
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Heineken sells beer in 12 packs for $13, in 24 packs for $25, and in 5-liter mini- kegs for $21. Assume that there is 0.355 liter per beer in a multipack.

    1. On a cost-per-liter level, which offers customers the best price?

    2. In comparing the price of a 24-pack to 12-pack on a per-liter basis, what kind of price segmentation is being used?

    3. In comparing the price of a 24-pack to 5-liter mini-keg, what kind of price segmentation is being used?

    4. Which psychological effects might drive customers to purchase a 5-liter keg?

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