Business Essentials (11th Edition)
Business Essentials (11th Edition)
11th Edition
ISBN: 9780134129969
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
Question
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Chapter 12, Problem 12.29C
Summary Introduction

Case summary:

For many years Company JC attracted customers who were attracted towards the discounts and promotions of the products. The prices of the products earlier where deeply inflated to enable the firm to give the appropriate discount as expected by the consumers. The price was dramatically changed by the CEO Person RJ.

The reaction from the consumers was not as expected. The revenue of Company JC went down by 25% than the previous year. He was replaced by the new CEO Person MU. He returned to the familiar pricing strategy of Company JC.

To explain: The target market of Company JC and Company AE and how they influences the pricing strategy.

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