Principles of Marketing, Student Value Edition (17th Edition)
17th Edition
ISBN: 9780134461526
Author: Philip T. Kotler, Gary Armstrong
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 11, Problem 11.23MML
Summary Introduction
To discuss: Pricing strategy of airlines and ethicality of charging baggage fees.
Unlike segment pricing, dynamic pricing does not discriminate in regard to location, gender, age, and other like characteristics. Dynamic pricing is adjusted in accordance with preferences of consumers and market forces. So, the method cannot be used for taking advantage of customers as it will damage customer relationships.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the best way Amazon can improve its ROA (and still keep its strategic fit)?
what is the meaning of differential pricing. Find an online retailer who uses differential pricing for some of its products. Include screenshots of the retailer website showing differential pricing
Explain how a pharmaceutical company's pricing for a non-proprietary drug might change if the objective was: (a) profitability, (b) sales volume, or (c) market share.
Many successful retailers use a loss leader pricing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their store and that they will make a profit in the long run. Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practices should be made illegal, as some states have done? How is this different from bait-and-switch pricing?
Chapter 11 Solutions
Principles of Marketing, Student Value Edition (17th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Research your company and determine their pricing on all of their products/services? Are they competitive in their pricing? Are they higher or lower than the competition? What type of pricing strategies do they use (refer to your text)? What do you feel about their pricing decisions? The company I chose is Walmartarrow_forwardWhat is price elasticity? Why is it important for marketers to consider price elasticity when making pricing decisions? (AACSB: Written and Oral Communication; Reflective Thinking)arrow_forwardToys'R'Us Which if any of the pricing strategies dicussed in the chapter are being applied by Toy'R'US?Could they adopt any other strategies? Discuss buyer reactions to pricing strategies employed in the toy retailing industry. How can you explain this reactions? Evaluare how Toy'R' US has responded to Wal-Mart's pricing strategy What reccommendations would you make to the management of Toy'R'US going forward? As a business consultant you would like to advise Toy R Us to come outwith their own “Private Labels”. Describe the roles and the successfactors of a private label to the management of Toy R Us.arrow_forward
- If you are to put -up a small start-up business with a starting capital of P50,000 a) What business will it be? and b) What will be your best pricing strategy? Justify.arrow_forwardHow can you attack Walmart because of its aggressive pricing actions? Note: By believing that Walmart forced a new kind of shopping experience upon a community and robbed them of a way of shopping they used to have (international hypermarket replacing local independent businesses). You should argue that a way of shopping that has been eliminated from the community by Walmart was a better way of shopping. (give your reasoning for believing that Walmart is wrong).arrow_forwardPrice elasticity means Select one: a. The choice where to advertise in order to reach the right people b. Possibilities of filling unsatisfied needs in sectors in which a company can profitably produce goods and services. c. The companies that design advertising for clients d. The extent to which supply or demand of a product respond to changes of pricearrow_forward
- What is the most effective price adjustment strategy for small businesses in highly competitive industries, and why do you believe it is the best approach? Which among the Product Mix Pricing Strategies do you think is the best to be used when you are in the food business? Why?arrow_forwardSome business owners or service providers offer lower prices to lower income individuals. For example, some dentists offer their services at lower prices to lower income patients. These sliding fees are often explained as a charitable gesture. Could the sliding fees also be a profit-maximizing strategy? Does the type of pricing in part 1 make consumers better off? Explain carefully.arrow_forwardWhat is price elasticity? Why is it important for marketers to consider price elasticity when making pricing decisions?arrow_forward
- For what types of products would price skimmingbe most appropriate? For what types ofproducts would penetration pricing be moreeffective?arrow_forwardThe pricing strategies of car dealers and airlines are somewhat unique and are examples of variable pricing. Unlike the price of most goods that remain static for some period of time, these two are example of pricing that fluctuates constantly. Two people may pay different prices for a car or an airline ticket on the same day. Please read the two articles below and answer the following questions in a short few paragraphs. How do the two differ in strategy and what drives this difference? Find an example of another good or service that is priced like automobiles or airline seats and explain the process. https://www.nerdwallet.com/blog/loans/dealers-set-car-prices/ https://www.farecompare.com/travel-advice/understanding-airline-ticket-prices-why-your-seatmates-airfare-cost-more-or-less-than-yours/arrow_forwardWhat are some ways that a company's marketing mix might give it a competitive edge? How can a company benefit from a well-executed marketing strategy? Why is it necessary to acknowledge the significance of the marketing mix in the formulation of marketing strategies? For the entrepreneur, which pricing scheme makes the most sense? Explain your answer. What are the most important considerations to keep in mind when choosing a location? Can I use what I've learned here when I start my own business in the future? In the event that you were granted the opportunity to start your own business, what would you sell and where would you sell it? What marketing strategies do you have in mind?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles Of MarketingMarketingISBN:9780134492513Author:Kotler, Philip, Armstrong, Gary (gary M.)Publisher:Pearson Higher Education,
MarketingMarketingISBN:9781259924040Author:Roger A. Kerin, Steven W. HartleyPublisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Marketing: An Introduction (13th Edition)MarketingISBN:9780134149530Author:Gary Armstrong, Philip KotlerPublisher:PEARSON
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Principles Of Marketing
Marketing
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Pearson Higher Education,
Marketing
Marketing
ISBN:9781259924040
Author:Roger A. Kerin, Steven W. Hartley
Publisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing
ISBN:9780134149530
Author:Gary Armstrong, Philip Kotler
Publisher:PEARSON
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning