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- What is the relationship between gross variable costs, total fixed costs, average variable costs, and average fixed costs when the cost driver changes?Under what conditions would a camera manufacturer adopt a skimming price approach for a new product? A penetration approach?Is it ethical for companies to split-test price points by offering different pricesto different groups of customers? Why or why not?
- Assume you are an entrepreneur of a new home technology product, how you can set your pricing policy? What are the main considerations in the determination of the price?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?What are the benefits of functional discounts?
- How does price relate to value in the eyes of a customer?What is value pricing?_____policy will produce more income in the early stages of a product life cycle only when the top of the market is insensitive to price and willing to pay what is asked. a. Prestige Pricing b. Skimming price c. Penetration Pricing. d. Psychological Pricing
