your customers can see the value of buying your product or service, they'll happily pay the price. If they don't see that value, it makes little difference how low you set your price, the customer will look somewhere else for the perceived value, even if "somewhere else" costs more than your product or service. True or False?

your customers can see the value of buying your product or service, they'll happily pay the price. If they don't see that value, it makes little difference how low you set your price, the customer will look somewhere else for the perceived value, even if "somewhere else" costs more than your product or service. True or False?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Similar questions

You are an owner of a small independent chain of coffee houses competing head-to- head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee. The wholesale price you pay for roasted coffee beans has increased by 25 per cent. You know that you cannot absorb this increase and that you must pass it on to your However, you are concerned about the consequences of an open price increase. Discuss three alternative price-increase strategies that address these concerns.
You are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee. The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price increase strategies that address your concerns.
2. Customers take into account various factors beyond just the monetary value when evaluating the worth of a product or service. The concept of 'Total Value' involves considering the overall perceived benefits in relation to the overall perceived price. Demonstrate your understanding of this concept by discussing the following scenarios, and for each, assess the Total Benefits and Total Price a Customer may consider: A Vehicle A Haircut A Laptop A Degree A Shoe
You are an owner of a small independent chain of coffee houses competing head-to-head with Costa Coffee. The retail price your customers pay for coffee is exactly the same as at Costa Coffee.The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price increase strategies that address your concerns. ( Maximum 250 words)
what is the term given to mean that consumers can be prevented from buying something due to the price ?
It is higher than the equilibrium price in order to be effective
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?
Based on the scenario, how can you define the importance of the price of a product in attractingcustomers?
What is your perceptions of value and how much you are willing to pay for the following products: automobiles, fast foods, jeans, and athletic shoes ?
Doing nothing would yield how much profit if favorable market conditions prevail according to the following decision if favorable create $20000 and if not favorable had outcome of -$10000 , find a. $20,000 b. $5,000 c. $0 d. -$10,000
Finally, use the utility optimizing condition that the ratio of Marginal Utility to Price for any good has to be the same across all goods to justify why it may be rational behavior to buy an item that is expensive compared to other items.
Take a position: Prices should reflect the value consumers are willing to pay versus Prices should reflect only the cost of making a product or delivering a service.