Marketing
14th Edition
ISBN: 9781259924040
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
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Chapter 14, Problem 6AMK
Summary Introduction
To determine: The sellers to the wholesalers and the gasoline stations. The sales price by the manufacturer
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.
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A manufacturer of motor oil has a trade discount policy whereby the manufacturer’s suggested retail price is $30 per case with the terms of 40/20/10. The manufacturer sells its products through jobbers, who sell to wholesalers, who sell to gasoline stations. What will the manufacturer’s sale price be?
1. A vendor buy-back contract that guarantees to buy back product not sold by the retailer is an example of solution selling which let the supplier overcome price-cutting pressures.
A) true B) false
2. Omnichannel marketing is a method to increase the level of commitment.
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A lawn mower manufacturer has a unit cost of $140 and wishes to achieve a margin of 30% based on selling price. If the manufacturer sells directly to a retailer who then adds a set margin of 40% based on selling price, determine the retail price charged to consumers.
Chapter 14 Solutions
Marketing
Ch. 14.1 - Prob. 14.1LOCh. 14.1 - Prob. 14.1LRCh. 14.1 - Prob. 14.2LRCh. 14.1 - Prob. 14.3LRCh. 14.1 - Prob. 14.4LRCh. 14.1 - Prob. 14.5LRCh. 14.2 - Prob. 14.2LOCh. 14.3 - Prob. 14.3LOCh. 14.4 - Prob. 14.4LOCh. 14.4 - Prob. 14.6LR
Ch. 14.4 - Prob. 14.7LRCh. 14.4 - Prob. 14.8LRCh. 14 - Prob. 1AMKCh. 14 - Prob. 2AMKCh. 14 - Prob. 3AMKCh. 14 - The Hesper Corporation is a leading manufacturer...Ch. 14 - Prob. 5AMKCh. 14 - Prob. 6AMKCh. 14 - Prob. 7AMKCh. 14 - Prob. 8AMKCh. 14 - Prob. 1VCCh. 14 - Prob. 2VCCh. 14 - Prob. 3VCCh. 14 - Prob. 4VCCh. 14 - Prob. 5VC
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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
- Suppose a manufacturer of exercise equipment sets a suggested price to the consumer of $395 for a particular piece of equipment to be competitive with similar equipment. The manufacturer sells its equipment to a sporting goods wholesaler who receives 25 percent of the selling price and a retailer who receives 50 percent of the selling price. What demand-oriented pricing approach is being used, and at what price will the manufacturer sell the equipment to the wholesaler?arrow_forwardTrue or False 1. Natural rights are the rights that nature teaches each man that he has according to the law of nature. 2. Physical privacy refers to privacy with respect to a person’s inner life. 3. Manipulation of supply is related to price setting; when oligopolistic industries recognize one firm as the firm that sets the price, that firm is the price leader.arrow_forwardPrice fixing is Multiple Choice the practice of charging different prices to different buyers for goods of like grade and quality. an arrangement a manufacturer makes with a reseller to handle only its products and not those of a competitor. the practice of charging a very low price for a product with the intent of driving competitors out of business. a seller’s requirement that the purchaser of one product also buy another product in the line. a conspiracy among firms to set prices for a product.arrow_forward
- On Sunday morning, a major international news organization broke a story that the company who manufactures three critical custom John Deere parts is treating their employees as slave-labor. To compound problems, a terrorist group launched an attack in a Middle Eastern country where the back-up supplier is located. The back-up supplier’s factory was badly damaged by a bomb and will be out of commission for at least 12 months. The “good news” is that they will sell you one-month of parts at 1000% the normal price. The final challenge is that the US government in January 2022 will require tracking and auditing on manufacturing inputs purchased abroad, which means that John Deere will have to devote extra company resources to maintaining compliance. Discuss options for addressing this situation in the short-term and long-term. Put together detailed strategic recommendations for managing future costs and risks over the next 5 years(Branding; Production; Sales; etc.arrow_forwardPart I: Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales. Part II: If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.arrow_forwardProduct should have exchange value and must be capable of being exchanged between seller and buyer for a mutually a. Agreed price b. Exchange Value c. Value satisfaction d. None of these.arrow_forward
- In our modern world, in which fewer people carry actual cash, what benefit to the seller does a cash discount carry? Why? Discuss the benefit to the sellerExplain why it is a benefitarrow_forwardMany successful retailers use a loss leader pricing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their store and that they will make a profit in the long run. Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practices should be made illegal, as some states have done? How is this different from bait-and-switch pricing?arrow_forwardWhich statement is correct? a. Dynamic discounting helps suppliers to reduce their cash conversion cycle b. Dynamic discounting helps suppliers to extend their payment terms c. Dynamic discounting helps buyers to reduce their cash conversion cycle d. Dynamic discounting helps suppliers to increase their marginarrow_forward
- For this discussion, use the following hypothetical scenario as the basis for your response: Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Address the following in your discussion post: Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. What degree is this type of price discrimination? How will the plan increase revenue? Why will both groups of customers be satisfied with the deal? Why is this a legal form of pricing?arrow_forwardWhat are the most important risks managers face if they sign an agreement with their competitors which sdpecifies the prices the firms will charge? a. They may go to prison or face a serious fine. b. Other firms may ignore the agreement. c. Other firms in the industry may retaliate. d. Their elasticity of demand will be less elastic at the higher price. e. There is no important risk in signing such an agreement and it will lead to larger profits.arrow_forwardIf an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.arrow_forward
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