MARKETING - RENTAL EBOOK ACCESS CODE
7th Edition
ISBN: 9781264156467
Author: Grewal
Publisher: MCG
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Chapter 14, Problem 9MA
Summary Introduction
To discuss: The person who is benefitted and harmed from the given market transaction.
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Can a producer of a popular low-cost or budget items effectively penetrate the high-end market? Give an example of a popular low-cost brand. What will it take for this to successfully move toward the high-end market?
Conversely, identify a well-known premium-only brand. Identify the price point at which its products sell. Assume that you are to offer new mid-priced products under this brand. What will it take to successfully move this brand toward the mid-point of the market?
You are a salesperson in an electronics company. At a recent trade exhibition, you met a supplier that was willing to supply your company with a product on an exclusive basis(i.e. available to your company only) that you could offer in your marketplace.The product in question has already been successfully developed and tested and – as yet – is not being sold on the market.You know from speaking to your customers, that there is demand for such a product and it would clearly plug a gap in your company’s product portfolio and give your company a significant competitive advantage.You approach the product management division with your idea and to your surprise, they are very unenthusiastic and reject your idea, stating “We always develop our own products in-house in this department – it would cost the company far too much to set up the processes to buy in a product from outside.”
a) Outline the possible range of reasons for the product management division’s rejection of your idea.
Many 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?
Chapter 14 Solutions
MARKETING - RENTAL EBOOK ACCESS CODE
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- Imagine you run a small apparel shop in nual India and positive about sales of T-shirt this year (2021) due to good monsoon. You 'signed a contract' with manufacturer to buy 100 T-shirt of four different colors of equal numbers at Rs 200 cach and paid advance 5000 Rs for it. Manufacturer supplied all the T-shirt of same color. Discuss the remedy you have in your hand against the manufacturer.arrow_forwardEthics Should a company opt to manufacture a product with a cheaper component if it knows that its inclusion will moderately increase the physical safety risk of the product for consumers? What if it is known that the increase in cost of using the more expensive andsafer component will lead to about a 50 percent lower adoption rate for the product by consumers, does it become more justifiable to do so then?arrow_forwardFor 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_forward
- You are a salesperson in an electronics company. At a recent trade exhibition, you met a supplier that was willing to supply your company with a product on an exclusive basis(i.e. available to your company only) that you could offer in your marketplace.The product in question has already been successfully developed and tested and – as yet – is not being sold on the market.You know from speaking to your customers, that there is demand for such a product and it would clearly plug a gap in your company’s product portfolio and give your company a significant competitive advantage.You approach the product management division with your idea and to your surprise, they are very unenthusiastic and reject your idea, stating “We always develop our own products in-house in this department – it would cost the company far too much to set up the processes to buy in a product from outside.”…arrow_forwardAccording to the video lecture on Corporate Social Responsibility, "An illegal activity whereby the manufacturer forces the retailer to sell the product for a determinate, often artificial, price." is called O Price Fixing O Price Packaging O Price Awareness O Price Gougingarrow_forwardWhen the borrower selects a third-party provider identified by the mortgage loan originator, what is the tolerance category on settiement costs? A) 0% B) 05 C) 10% D) No limitarrow_forward
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- Some high-fashion retailers, notably H&M and Zara, sell what some call“disposable fashion”—apparel priced so reasonably low that it can bedisposed of after just a few wearings. Here is your dilemma: You havean important job interview and need a new suit. You can buy the suit atone of these stores for $129 or at Brooks Brothers for $500. Of course,the Brooks Brothers suit is of higher quality and will therefore lastlonger. How would you use the two value-based approaches describedin this chapter to determine which suit to buy?arrow_forwardReview the following hypothetical scenario and answer the following question: We are increasingly concerned about Over-the-Top programming. With HBO and Showtime offering their programming directly to consumers and some sports networks (e.g., NFL and MLB) considering the same, we are concerned that we might lose subscribers. We need to know how losing subscribers would affect existing networks and whether it might impact their decision to market directly to consumers. It would assist us if you would identify whether there are any network effects in the decisions of cable customers to “cut the cord” and networks to provide OTT programming. If more networks sell directly to consumers, how will this affect the demand for our cable television services? Also, will it impact the decision made by other networks. Finally, are there any strategic moves that we should be making to counteract this trend?arrow_forwardChoose a product that you patronize, examine well the characteristics of your chosen product and describe it? Make a comment about the price of the product, then analyze if its reasonable or not. Explain. Where does the product been distributed. what do you think why it is placed there. What is the marketing platform being used by the product to reach the target market and why?arrow_forward
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