Marketing: The Core (Irwin Marketing)
7th Edition
ISBN: 9781259712364
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 11, Problem 1VC
Summary Introduction
Case summary:
Person AW has created the Product C in 1937. The case mainly explains how Person AW’s son Person D had made an addition to the new products and made an expansion in the business. The grandsons of Person AW Person P and Person EW are running C Laboratories. The main focus of the company is the fixing the prices for the Product C.
The case helps to know about the four pricing approaches like cost-oriented, demand-oriented, competition-oriented, and profit-oriented. These concepts mainly influences the consumer products price.
Characters in the case:
- Person AW
- Product C
- Person AW
- Person P
- Person EW
- C Laboratories
Introduction:
The method that is adopted by the firm to fix the selling price is known as pricing. The pricing generally depends on the average cost and the perceived value of the product.
To determine: The four approaches for price setting that that is used by the Product C and the approach that has to be utilized specifically.
Expert Solution & Answer
Explanation of Solution
The Product C utilizes the four aspects for price settings:
- The demand oriented pricing approaches are mainly taken for the present taste and preference of the consumers
- The cost oriented pricing approaches mainly has its focus on the logistics, marketing, production, and the costs for overheads
- The profit oriented pricing approaches pricing approaches mainly considers the profit margin of the retailers when the prices are set
- The competition based pricing approaches mainly considers the prices that are set by the competitors at the time of price setting
Conclusion
The Product C utilizes various approaches as in every perspective it contributes to the various pricing decision. However, certain approaches are appropriate for some retailers and some products.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The Lilly Pulitzer brand of brightly colored dresses and resort themed designer items is the uniform of the preppy, Palm Beach set. Indeed, only select young women belonging to certain sororities in certain communities are allowed discounts on the $100 to $500 items. But Target created a buying frenzy by debuting its Lilly for Target collection in April 2015. Target’s Pulitzer line was composed of 250 items, such as Lilly dresses at $40, which sold out within minutes of launch, crashed the store’s Web site, and created a firestorm of negative online comments from customers. The long lines outside stores caused one manager to name the event “Preppy Black Friday,” likening it to the frenzied shopping day after Thanksgiving known as Black Friday. Most shoppers went home empty-handed because others scooped up as much as they could, emptying the racks within minutes. Items then sold on eBay for much higher prices. This type of launch is not new for Target. In 2011, the retailer launched a…
The Lilly Pulitzer brand of brightly colored dresses and resort themed designer items is the uniform of the preppy, Palm Beach set. Indeed, only select young women belonging to certain sororities in certain communities are allowed discounts on the $100 to $500 items. But Target created a buying frenzy by debuting its Lilly for Target collection in April 2015. Target’s Pulitzer line was composed of 250 items, such as Lilly dresses at $40, which sold out within minutes of launch, crashed the store’s Web site, and created a firestorm of negative online comments from customers. The long lines outside stores caused one manager to name the event “Preppy Black Friday,” likening it to the frenzied shopping day after Thanksgiving known as Black Friday. Most shoppers went home empty-handed because others scooped up as much as they could, emptying the racks within minutes. Items then sold on eBay for much higher prices. This type of launch is not new for Target. In 2011, the retailer launched a…
Touch Toiletries, Inc. has developed an addition to its Lizardman Cologne line tentatively branded Oded Troade Cologne. Unit varible cost are 45 cent for a three-ounce bottle, and heavy advertising expenditures in the first year would result in total fixed costs of $900,000. Oded Toade Cologne is priced at $750 for a three-ounce bottle. How many bottles of Oded Toade must be sold to break even?
Chapter 11 Solutions
Marketing: The Core (Irwin Marketing)
Ch. 11.1 - Prob. 11.1LOCh. 11.1 - Prob. 11.1LRCh. 11.1 - Prob. 11.2LRCh. 11.2 - Prob. 11.2LOCh. 11.2 - Prob. 11.3LRCh. 11.2 - Prob. 11.4LRCh. 11.3 - Prob. 11.3LOCh. 11.3 - Prob. 11.5LRCh. 11.3 - Prob. 11.6LRCh. 11.4 - Prob. 11.4LO
Ch. 11.4 - Prob. 11.7LRCh. 11.4 - Prob. 11.8LRCh. 11.5 - Prob. 11.5LOCh. 11.5 - Prob. 11.9LRCh. 11.5 - Prob. 11.10LRCh. 11 - Prob. 1VCCh. 11 - Prob. 2VCCh. 11 - Prob. 3VCCh. 11 - Prob. 4VCCh. 11 - Prob. 5VCCh. 11 - Prob. 1AMKCh. 11 - Prob. 2AMKCh. 11 - Prob. 3AMKCh. 11 - Prob. 4AMKCh. 11 - Prob. 5AMKCh. 11 - Prob. 1BYMPCh. 11 - Prob. 2BYMPCh. 11 - Prob. 3BYMP
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
- 1. Consider a familiar product, such as Apple’s iPhone. What would you consider to be its next closest substitute? Describe two factors that would differentiate the iPhone from its next closest substitute. 2. What is the difference between a positive differentiating factor and a negative one? Is it possible for an item to simultaneously have both positive and negative differentiating factors? 3. Which would be more prudent: pricing an item above its VTC, exactly at its VTC, or below its VTC? Explain your reasoning.arrow_forwardDDK is a high-technology firm. It has developed a new component that offers superior advantages over competing products. This component can be used in a high-speed production system in all factories. With durable composition, it has a useful life of ten months versus four months for competing products. The component will offer users a significant improvement in production efficiency. 1. Identify the FIVE steps of value-based approach for pricing. Explain EACH step with an example based on the case above.arrow_forwardPlease help this is just an assessment Our company Name is HEALTHY BATH COMPANY and our Product is BATHROOM HAIR KEEPER We need the following please help: Pricing Strategy Promotion Strategy Long Range Plans Facilitiesarrow_forward
- Revenue management requires management to deal with:a) multiple pricing structures.b) changes in demand.c) fo recasts of use.d) forecasts of duration of use.c) all of the abovearrow_forwardThe questions to follow are based on the Converse, Chuck Taylor, All Star Sneakers introduced see attached image Q1 - Which one of the following pricing objectives would be considered most appropriate for the Converse All Star sneaker? Justify your answer.• Profit orientated goals• Sales orientated goals.• Increasing market shareQ.2 - If Converse introduced a new SMART WATCH for Men and Women, should they launch the product using Market Skimming or Marketing Penetration? Explain your choice.arrow_forwardWHICH FACTORS INDICATE THE POSSIBLE LOWEST AND THE HIGHEST PRICE THAT CAN BE SET ON A PRODUCT? a. THE NEWNESS OF A PRODUCT AND ITS AVAILABILITY b. FIXED COSTS AND CUSTOMER'S PERCEPTION c. COMPETITORS' PRICES d. THE DEMAND FUNCTION e. NONE OF THESEarrow_forward
- Research its VM instance types and pricing information. What are some of the example use cases of each VM instance type?arrow_forwardImagine that you are the newly hired brand manager for a restaurantthat is about to open. Both the local newspaper and a gourmet foodmagazine recently ran articles about your new head chef, calling her oneof the best young chefs in the country. In response to these positivereviews, the company wants to position its brand as a premium,gourmet restaurant. Your boss asks what price you should charge forthe chef’s signature filet mignon dish. Other restaurants in the areacharge around $40 for their own filet offerings. What steps might youundertake to determine what the new price should be?arrow_forwardBased on principles from the chapter, explain how priceaffects customer perceptions of the Coach brand.arrow_forward
- As Director of Pricing for a mid-market retailer, Mary is struggling with her retail pricing strategy. Marys’ struggles, however, are familiar themes across retail today, like ‘getting shoppers in her stores and still driving profits’. So what’s Mary to do? More work, late nights? More spreadsheets? More status quo, or is it time to take pricing innovation for a test drive? For reference: https://youtu.be/HGhWnIb1nOYarrow_forwardList and explain four key influencers on pricing decisions . A new customer ABC Ltd, wants to buy 500 units of your product, but is only prepared to pay RM4 per clock. This will not cover the total cost of making the product, but it will cover the variable costs – anything over RM3 makes a Provide and discuss three factors that you would take into account when deciding whether or not to take the order.arrow_forwardGeorge Castilla willingly paid $499 for an Android phone on the day it hit the market, even though it was far more expensive than the cell phones he had bought in the past. He wasn't concerned about the price as he wanted to be one of the first on campus to have this product. Consumers like George are the target of firms using skimming pricing strategies. ( ) a) True b) False Cost, speed, and dependability need to be considered when deciding upon modes of transportation. ) a) True falsearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Contemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning