Business Essentials (11th Edition)
11th Edition
ISBN: 9780134149240
Author: EBERT
Publisher: PEARSON
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Chapter 12, Problem 12.11A
Summary Introduction
To explain: The customers in the target market of the new business venture.
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First review the topics below and select one. Once selected, include the concept, a description of the concept, and what about the concept you understand and what it is about the concept that can be confusing.
How pricing objectives should guide strategy planning for pricing decisions.
Setting the price level for a product in the early stages of the product life cycle.
Variations of a price structure, including discounts, allowances, and who pays transportation costs.
The role of price in obtaining a competitive advantage by offering target customers superior value.
The legality of price-level and price-flexibility policies.
How most wholesalers and retailers set their prices by using markups.
Advantages and disadvantages of average-cost pricing.
How to use break-even analysis to evaluate possible prices.
The advantages of marginal analysis and how to use it for price setting.
Demand-oriented factors that influence price setting.
Elements of the marketing strategy planning process…
Explain why it is a good idea to price a product according to value perception of the customers. Also give some examples of products in which the company has used value-based pricing technique ???
• Identify THREE key Pricing strategies and discuss the importance of understanding customer value perceptions, company costs, and competitor strategies when setting prices. What did you learn about. the factors affecting pricing and products, services, and brands. What did you learn about how companies adjust and change their prices to consider different types of customers and situations, these can just be bullet points or a short narrative. • Pick ONE of these key concepts and summarizes the significance of these in a 1 or 2 paragraph explanation of the strategy. (Including examples if appropriate)
Chapter 12 Solutions
Business Essentials (11th Edition)
Ch. 12 - Prob. 12.1QRCh. 12 - Prob. 12.2QRCh. 12 - Prob. 12.3QRCh. 12 - How is the concept of the value package useful in...Ch. 12 - Prob. 12.5QACh. 12 - Prob. 12.6QACh. 12 - Prob. 12.7QACh. 12 - Prob. 12.8QACh. 12 - Prob. 12.9AECh. 12 - Prob. 12.10AE
Ch. 12 - Prob. 12.11ACh. 12 - Prob. 12.12ACh. 12 - Prob. 12.13ACh. 12 - Prob. 12.14ACh. 12 - Prob. 12.15ACh. 12 - Prob. 12.16TECh. 12 - Prob. 12.17TECh. 12 - Prob. 12.18TECh. 12 - Prob. 12.19TECh. 12 - Prob. 12.20EECh. 12 - Prob. 12.21EECh. 12 - Prob. 12.22EECh. 12 - Prob. 12.23EECh. 12 - Prob. 12.24CCh. 12 - Prob. 12.25CCh. 12 - Prob. 12.26CCh. 12 - Prob. 12.27CCh. 12 - Prob. 12.28CCh. 12 - Prob. 12.29CCh. 12 - Prob. 12.30CCh. 12 - Prob. 12.31CCh. 12 - Prob. 12.32C
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Describe the basic market forces that are relevant to pricing and decision-making for companies. Include the following: What information would you want to have in order to make sound pricing decisions? With financial information, there is often some level of uncertainty and estimation. How would you explain any risk or uncertainty about information to senior management? How would you suggest monitoring and responding to competitors' pricing actions?arrow_forwardWhen can you use different pricing strategies and what are their suitable product categories? Instruction: -give examples for each type ? -Answer in one page. -answer the question about only the List of 7 strategies are listed in the image.arrow_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_forward
- In pricing a product cost works as a floor and customer perception of the value of a product works as a guide toprice a product. Explain why it is a good idea to price a product according to value perception of the customers.Also give some examples of products in which the company has used value-based pricing technique ?arrow_forwardYou have recently been appointed as the Marketing Manager of a Dog Grooming Business. The leadership team has asked you to ‘price’ a new service – a ‘Mobile’ Dog Grooming service. Explain, with examples, the five factors you should take into consideration when developing a pricing strategy?arrow_forwardPrice is an important element of the marketing mix. Create a word response to the following, * Describe the importance of pricing in the marketing mix * Describe three different pricing strategies and provide a real-life example of each in action. * Suggest another strategy that would have worked better. * What are the steps that need to be followed for developing the pricing of a new product? Can these steps be interchanged? Why?arrow_forward
- 1. Consider the following product categories: Automobiles, smartphones, clothing lines (a) For each category of product, give an example of a well-known brand that uses price as a background variable and one that uses price as a lead variable. (b) Choose one of the background-lead pairs and prepare a product-life cycle pricing strategy.arrow_forwardAssume you are the finance officer of a private school; due to pandemic the revenues are declining. However, you suspect that raising tuition might not be a good decision. What internal and external pricing factors should you consider before deciding? Support your answer with an examplearrow_forwardHow does value pricing strategy affect the company's performance and how they benefit from this?arrow_forward
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