Under cost-plus pricing, the more price elastic the demand is for a product, the higher the markup should be.
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Under cost-plus pricing, the more price elastic the demand is for a product, the higher the markup should be.
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- Insights about "Good pricing involves finding a balance between the customer's desire to obtain good value, and the company's need to cover costs and earn profits"If an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.In terms of pricing principles, why do rental companies often display the retail price alongside the rental price for products they feature?
- 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.Why would a price skimming strategy probably not work for a “me-too” product, something very similar to a new-to-the-world product?How might the current price wars change the pricing tactics used by the major pizza chains?
- Though organizations sometimes base pricing decisions on the cost of materials, another option is to base price on perceived customer value. Choose a product and estimate the perceived value of that product as a function of customer benefits and customer costs. Compare your estimate to the actual price charged for the product. What modifications to the price would you recommend?For what types of products would price skimmingbe most appropriate? For what types ofproducts would penetration pricing be moreeffective?Which industry is most likely to adopt an experience-curve pricing approach? Multiple Choice advertising electronics ready-to-eat cereal space exploration mining
- Pricing is an uncontrollable element of the marketing environment.; True or FalseROPO, a model you have been familiar with where the majority of the customers in our country search the product online and purchase the product offline. You have been given a task to conduct training regarding the pricing models that prevails in the field of ecommerce marketing. Train your unwitting audience regarding these pricing models in detail so that they should know, how to earn money in the field of ecommerce.Cost plus pricing is a logical method of pricing since it takes into account current demand, perceived value, and competition. TRUE OR FALSE?
