How can a business that is using "ideal standards" to set prices under a cost-plus method (specifically the Product Cost Concept), actually set the selling prices of their products too low?
Q: Is it ethical for companies to split-test price points by offering different pricesto different…
A: Ethics or moral philosophy is a philosophy branch that "involves the systematization, protection,…
Q: Direction: Describe or interpret the given illustrations in 2-5 sentences only. Margin -…
A: Ans. Margin and markup are generally confused and used interchangeably by the people but they are…
Q: Which of the following statements is not correct about pricing and prices? Select one: a. It is the…
A: The marketing mix is a model used by the marketers to organize the components of marketing into 7…
Q: The inefficiency of second best pricing is larger.. Select one: a. all the other alternatives are…
A: The second best pricing refers to the next best alternative price which could be choosen if the…
Q: Which of the following costs is a product cost? Depreciation of factory maintenance equipment.…
A: The product cost is the cost which is directly identified to the cost of making a product. Product…
Q: This gives an opportunity to explore direct and indirect price discrimination within the context of…
A: Direct price discrimination occurs when a firm break up consumers into identifiable groups. for…
Q: If you see a price that is a little less than a round number, e.g. $1.99 or €99.95, does it makes…
A: Psychological Pricing is a method of pricing products where companies set the price lower that its…
Q: Under what conditions would a digital camera manufacturer adopt a skimming price approach for a new…
A: The skimming price approach is followed by the firm presenting an innovative item setting the most…
Q: Should discounts be applied to products that are also in high demand? Justify!
A:
Q: Suppose a manufacturer of exercise equipment sets a suggested price to the consumer of $395 for a…
A: Given, Retail margin factor = 0.4 Wholesale margin factor = 0.25 Market price = 395
Q: Under what circumstances would manufacturers either set prices that try to maximize profits, or…
A: Pricing: It is the major factor when it comes to a global business that determines GDP growth,…
Q: What
A: Pricing a product optimally is not a child play rather a complex and challenging task. A company…
Q: Explain with the use of examples, the various product mix pricing strategies which a firm may…
A: The vast majority of products are part of a larger product mix. As a result, they must be priced…
Q: What other factors besides the base selling price established by pricing formulas must operators…
A: The setting up a restaurant is quite expensive, and a large amount of investment is required with…
Q: 1. The CEO of a large company selling seeds and garden supplies to consumers and businesses through…
A: Ans. Pricing of the product is one of the maximum critical components of advertising blend in which…
Q: Elaborate on 4 different pricing strategies that companies can utilize? Explain when would each of…
A: Note: I have answered for 1st question. kindly post the 2nd question separately. Pricing strategy is…
Q: What might make it difficult to determine the prices of one’s competitors? When such difficulties…
A: It's difficult to figure out what your competitors' prices are - A few businesses do this since…
Q: Under cost-plus pricing, the more price elastic the demand is for a product, the higher the markup…
A: Cost-Plus pricing is a pricing technique that is used commonly in many industries, for the reason…
Q: Pricing has objective and subjective constraints when Marketing Managers must set a value based for…
A: It is important for marketing managers to have a correct pricing strategy based on the situation on…
Q: What are the longer-run Implications of cut the price strategy for sales manager and the business…
A: Pricing strategy Pricing strategy refers to the process by which businesses price their goods or…
Q: generalizations about what kinds of products tend to be price inelastic across different product…
A: Price is the strongest tool with any marketer. Even by increasing the price by a smaller percentage…
Q: Does it make sense for Hammerpress to compete in product categories where the market dictates a…
A: Pricing refers to a marketing strategy in which a marketer makes strategies to determine the price…
Q: Explain how a pharmaceutical company's pricing for a non-proprietary drug might change if the…
A: Pricing is one of the essential matters that require attention, effective planning, and correct…
Q: Though organizations sometimes base pricing decisions on the cost of materials, another option is to…
A: A customer purchases a product because he believes it will benefit him. Customer perceived value is…
Q: What are the possible problems that will be encountered if a firm uses | perceived-value pricing and…
A: In perceived value pricing method, price is set based on the customer willingness to pay and what he…
Q: A business wants to capture market share in a short period of time priced its services at a…
A: A pricing strategy is a model or strategy used to build up the best price for an item or service. It…
Q: What is the main reason for establishing pricing objectives? a. to give direction for price…
A: Option A
Q: 1 What are some examples of bundle pricing? 2 What are some other examples of promotional pricing?…
A: 1.Bundle pricing is the act of selling a bunch of things as a bundle at a cost lower than what the…
Q: Create a pricing scheme of certain product. Search for a product you think that the price is not…
A: PRICING SCHEME: It is used to set a range of different prices for a product other than the default…
Q: Penetration pricing and price skimming are marketing strategies commonly implemented when companies…
A: Both strategies are commonly implemented in the organization while launching new products and…
Q: What profit-based pricing approach should a manager use if he or she wants to renect the percentage…
A: Pricing is the process by which a company determines the price at which it will sell its products…
Q: Why or why not should food and wine be in a similar price range when matching them
A: Price is more of a psychological concept where it acts as a perceived value in the eyes of the…
Q: What are the practical problems in applying price theoryconcepts to actual pricing decisions?
A: Pricing a product or service refers to the establishment of a selling price for a product or service…
Q: ROPO, a model you have been familiar with where the majority of the customers in our country search…
A: ROPO stands for research online, purchase offline model. Customers search for product information or…
Q: Explain how a brand of a commonly purchased consumer packaged goods, such as toilet tissue, could be…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The first Target store opened in 1962. Its initial strategy was to set prices low to attract a large…
A: There are different types of pricing strategies and according to different business suitability they…
Q: In pricing a product cost works as a floor and customer perception of the value of a product works…
A: In pricing a product cost works as a floor and customer perception of the value of a product works…
Q: Product line pricing refers to setting a price for by-products in order to make the main product’s…
A: Yes, Its True! By-product pricing refers to setting a price for by-products to make the main…
Q: Penetration pricing and price skimming are marketing strategies commonly implemented when companies…
A: Pricing is an important determinant of business trade and success of volume of trade.
Q: What is meant by pricing? Describe any three strategies that can be done by firms if they do not…
A: Pricing is the process through which a business organization sets a price for its product or…
Q: Given that there is a serious disadvantage to cost-based pricing, how would your account for its…
A: 1. Definition: Cost-Based pricing is a pricing method which involves determining the manufacturing…
Q: Assume you are an entrepreneur of a new home technology product, how you can set your pricing…
A: A pricing policy is indeed a consistent response to a formal inquiry. A systematic approach to…
Q: Discuss the following briefly. a. price wars b. Price psychology c. Market Pricing
A: Disclaimer: Since you have posted a question with multiple sub-parts, so as per the company…
Q: Walmart has a policy that they will match any competitor's price- sometimes all the customer has to…
A: This Pricing strategy refers to matching a lower price of a product within a store from the…
Q: Essay. How are you going to relate price setting in your real-life situation? Give a specific…
A: Pricing refers to a marketing strategy in which a marketer makes strategies to determine the price…
Q: Companies that set a low price for a new product in order to attract a large number of buyers and a…
A: Several businesses set their prices without giving it any thought. This is a mistake that causes…
Q: For what types of products would price skimmingbe most appropriate? For what types ofproducts would…
A: Price skimming and price penetration are the pricing methods adopted by organizations when…
How can a business that is using "ideal standards" to set prices under a cost-plus method (specifically the Product Cost Concept), actually set the selling prices of their products too low?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You are in the process of planning a hypothetical airline flight from New York to St. Louis. Visit the websites of three differentairlines and compare prices for this trip. Try travel dates that include a Saturday night layover and those that do not. Try dates lessthan seven days away, and compare, those prices with flights that are more than twenty-one days out. How do you explain thesimilarities and differences you see in these prices?5- Pricing that is adopted to influence the perception of the value of the product by comparing the actual price by the buyers is called ______________________. a. Item price removal b. Resale price maintenance c. Predatory pricing d. Deceptive reference priceDirections: Create a pricing scheme of certain product. Search for a product you think that the price is not reasonable. Create your own price scheme in able to meet the expectation of the buyer and able to meet also the good customer relationship. Defend your answer
- Suppose a manufacturer of exercise equipment sets a suggested price to the consumer of $395 for a particular piece of equipment to be competitive with similar equipment. The manufacturer sells its equipment to a sporting goods wholesaler who receives 25 percent of the selling price and a retailer who receives 50 percent of the selling price. What demand-oriented pricing approach is being used, and at what price will the manufacturer sell the equipment to the wholesaler?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?A firm wants to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain a marketing manager’s permission to reduce price below a specific threshold. This solution would only work if a) The marketing manager has no information about the matter at hand b) The marketing manager can only get all the information on the case from the sales agent c) Enough unbiased information is transferred to the manager to prevent an unprofitable price reduction d) All of the above Please clearly explain your answer
- Explain how a brand of a commonly purchased consumer packaged goods, such as toilet tissue, could be skim-priced? A service provider has decided to charge his customers P5, 000 for every upholstery cleaning service. The customer thinks that it is a steal , since the service provider is doing a great job and thinks that it could have costed them at least P7, 000 had they agreed to the first service provider that they went to. The total cost to the provider is P2, 000 which include the cleaning materials and labor. Identify the ceiling price and floor price of the service. Should the service provider decide to increase his price to P6, 500, do you think it is still acceptable to the customer? Why? Give an example of a situation where a price that is low with respect to the product’s VTC would not serve as an incentive to buy. What would be the implications of this for the use of a penetration strategy for pricing his product? RESEARCH: What is a pioneer advantage? Describe…This gives an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario. Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. Why will both groups of customers be satisfied with the deal?For this discussion, use the following hypothetical scenario as the basis for your response: Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Address the following in your discussion post: Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. What degree is this type of price discrimination? How will the plan increase revenue? Why will both groups of customers be satisfied with the deal? Why is this a legal form of pricing?
- 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.1. One way to support a charge of ____________ against a company would be to prove that they sold a product or service to different business buyers at two or more prices that did not reflect a proportional difference in costs. a. psychological pricing b. price discrimination c. product-form pricing d. customer-segment pricing e. loss-leader pricing 2. An industry-leading high-tech company just announced that it was cutting its prices and would price its products at whatever level was necessary to protect its market share. This is evidence of a ________ pricing objective. a. target return b. sales-oriented c. status quo-oriented d. non-price competition e. profit maximizationExplain, . How would a firm handle a situation where a competitor launches a similar product with advanced features and lower pricing?