Concept explainers
a)
Case summary:
Company WG manufactures 4 categories of instruments, such as batch custom, mass produced, one-of-a-kind, and mass customized. It is necessary to set different prices to different categories of instruments to sustain in the business. Person BA, who is the vice president of Company WG, is responsible for setting the price.
The recommended retail cost is $349. Person BA calculates Company WG’s variable and fixed costs to know the break-even point and profit. Profits and break-even points are calculated under different conditions to assess the effects of production facility.
Characters in case:
Company WG
Person BA
Introduction:
Demand curve represents the number of units sold at a particular price. This graph shows the prices and quantity sold. The 3 demand factors that affect the price are consumer taste, price and obtainability to substitute the product, and customer income.
To determine: The examples of shifting the demand curve to the right to get a greater price.
b)
Case summary:
Company WG manufactures 4 categories of instruments, such as batch custom, mass produced, one-of-a-kind, and mass customized. It is necessary to set different prices to different categories of instruments to sustain in the business. Person BA, who is the vice president of Company WG, is responsible for setting the price.
The recommended retail cost is $349. Person BA calculates Company WG’s variable and fixed costs to know the break-even point and profit. Profits and break-even points are calculated under different conditions to assess the effects of production facility.
Characters in case:
Company WG
Person BA
Introduction:
Demand curve represents the number of units sold at a particular price. This graph shows the prices and quantity sold. The 3 demand factors that affect the price are consumer taste, price and obtainability to substitute the product, and customer income.
To determine: The pricing decisions involved in moving along the demand curve.
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Chapter 13 Solutions
Marketing
- Pricing Q: What are different factors that should be considered by marketers before deciding price of the product? Q: How the total cost is determined/calculated by company for deciding price of the product? Q: What is breakeven point? How is it calculated? Q: How the net profit is calculated? Q: write the following procedures and formulas for calculating price? a. Cost Plus pricing b. Breakeven pricing c. Return on investment pricing d. Value based pricing Q: Write the methods for determining pricing of new products?arrow_forwardWhile break-even pricing is relatively simple, markup pricing uses more complicated concepts of cost. Question 49 options: True Falsearrow_forwardPricing Q: What are different factors that should be considered by marketers before deciding price of the product? Q: How the total cost is determined/calculated by company for deciding price of the product? Q: What is breakeven point? How is it calculated? Q: How the net profit is calculated? Q: Consult your book and write the following procedures and formulas for calculating price? Cost Plus pricing Breakeven pricing Return on investment pricing Value based pricing Q: Write the methods for determining pricing of new products?arrow_forward
- Gillette’s pricing scheme is to sell razor handles at a relatively low price and razor blades at a relatively high price. This practice is known as: Group of answer choices predation. retail maintenance. leverage. tying.arrow_forwardFancy Fashions sells jeans for $59 and sweaters for $39, To increase sales of jeans and sweaters, Fancy Fashions promotes this Product Price Bundle: "Buy a pair of jeans and a sweater for $98'. Will this Product Price Bundle will work well to increase the sales of jeans and sweaters? Explain your answer in no more than 2 bullet points.arrow_forward"Belle's Boutique starts off clothing full price for 4 weeks, discounts it to 25% of for 2 weeks, discounts it to 50% off for 2 more weeks, and then marks it down to below cost. Belle's Boutique uses a _________ strategy for pricing. high-low everyday low pricing skimming status quo competitive parityarrow_forward
- Which of the following options best describes the going rate pricing technique? Sets prices high during new product/service introduction Sets prices consistently low to attract price-sensitive customers Sets prices to align with those of competitors Sets prices to maximize profit, based on consumer demandarrow_forwardWhen customers try to pit suppliers against each other to drive down the price, the salesperson should offer an initial discount and raise the price later on. Question 13 options: True Falsearrow_forwardThe airline industry alters the price of its seats based on the type of seat, the number of seats remaining, and the amount of time before the flight departs. This is example of: Select one: a. Basing-point pricing b. Zone pricing c. Dynamic pricing d. FOB-origin pricing Which of the following statements is correct? Select one: a. If the prices of the product are below its costs, profits will boost. b. The pricing strategy suggesting value to the customer and profit to company should be followed. c. If customers perceive that the product is over-priced, they are keener to buy it. d. If customers perceive that a product’s price is lower than its value, they will not buy it.arrow_forward
- Explain the six-step process in setting company’s pricing policy with proper example? Describe, in as much detail as possible, If you don't able then please skip it.arrow_forwardA pricing strategy is Group of answer choices a long-term approach to setting prices in a companywide integrated effort using one-time seasonal discounts to reduce inventory. using slotting allowances to gain access to distribution channels a short-term approach to setting pricesarrow_forwardIs the price of the whole wheat noodles premium, discounted, or on par with otherarrow_forward
