CONNECT FOR MARKETING 180DAY
6th Edition
ISBN: 9781260537307
Author: Grewal
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Question
Chapter 14, Problem 2MA
Summary Introduction
To identify: The correct view and the reason for it.
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One roommate believes the most important objective in setting pricesfor your new pet grooming business is to generate a large profit whilekeeping an eye on your competitors’ prices; the other roommatebelieves it is important to maximize sales and set prices according towhat your customers expect to pay. Who is right and why?
Be prepared to discuss the following, supporting your arguments with biblical principles that apply:
How to set prices that are just and fair that allow firms to pay employees well, but still make a profit.
How to advertise and promote one’s product/service in a way that truly represents the value/performance of the product/service.
Suppose you have been asked by a food company to design an experiment that examines consumers’ purchase intentions toward their product (i.e., cereals), as a result of their recent pricing strategies (i.e., low price, high price) and product quality (i.e., organic offerings, nonorganic offerings) strategies. Basically, they would like to know the best combination of product quality offering and pricing strategy that yields the highest levels of consumers’ purchase intentions. How would this experiment look like?
When working on this assignment, you should consider the following:
Subjects: The experiment participants should be customers who consume significant breakfast cereals and are diverse in terms of income group, age group and work type.
Experimental conditions:
Independent variables – quality (categorical), price
Dependent variable – Propensity to pay
Effects: The main effect shall be impact of independent variables on propensity to pay such as how much affect does quality or…
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