Marketing
7th Edition
ISBN: 9781260428292
Author: Grewal, Dhruv
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 10MA
Summary Introduction
To discuss: Opinion of Person X on the given situation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A study indicated that the optimal price for a consumer product is $32.45. Most products in the market sell for $29.99. What price would you suggest to retailers for selling the product and why?
A haute cuisine restaurant is opening down the street, and its owner asks you for advise on pricing. Should you suggest that the restaurant price an appetizer at $6.99 or $7, and why?
Describe what you are selling (1 item only):
What is the price you will sell at to sustomer:
How will you explain to potential customers WHY they should buy your product?
If your total costs to run the company is $5,000 per month, how many do you have to sell each month
to cover your costs? Show your calculation!
Do you think this is a realistic number to achieve each month? Explain your answer.
In case sales go slower than expected, come up with a volume discount offer for customers and
describe how it will work in the box below:
(for example if you buy 5 items instead of 1, you will give customer a 10% discount).
Does "value" mean the same thing as "low price"? How do these concepts differ?
Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value?
Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each.
(4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.
Knowledge Booster
Similar questions
- What other factors besides the base selling price established by pricing formulas must operators consider when setting menu prices? Use an actual restaurant as an example to defend your opinion.arrow_forwardWeek after week, consumers shop for many of the same groceries. At some point, the product may be priced the same and look the same as before but with less in the package. If consumers are not made aware of the change, is this deception? Is this different from deceptive pricing? Explain.arrow_forwardAlicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase overall sales.arrow_forward
- Imagine that you are the newly hired brand manager for a restaurantthat is about to open. Both the local newspaper and a gourmet foodmagazine recently ran articles about your new head chef, calling her oneof the best young chefs in the country. In response to these positivereviews, the company wants to position its brand as a premium,gourmet restaurant. Your boss asks what price you should charge forthe chef’s signature filet mignon dish. Other restaurants in the areacharge around $40 for their own filet offerings. What steps might youundertake to determine what the new price should be?arrow_forwardYou have recently been appointed as the marketing manager of a 100-room hotel located in the central business district (CBD) of a major city. You are shocked when you are told by the Chief Operating Officer (CEO) that the hotel does not employ revenue management. You have read that a revenue management pricing strategy applied in the hotel context can increase revenues by up to 17%. You immediately call a meeting so that you have an opportunity to: a) briefly outline how revenue management works in the hotel industry; and b) convince management of the benefits of implementing a revenue management strategy. What would you discuss in such a meeting?arrow_forwardAs a newly appointed CFO of a microfinance, you realize the products on offer are not viable and therefore you decide to overhaul the product development process and product pricing. Highlight the key aspects you will focus on to ensure products are viable.arrow_forward
- if you are planning to open a business in your community. What business will it be? and What is the best pricing strategy are you going to use and why?arrow_forwardExplain why fine dining establishments must have very high markups over the cost of their foods. Is it possible to be a low-priced fine dining establishment?arrow_forwardLook up the following site to evaluate restaurants’ pricing strategies based on reviewers’ perceptions of service levels, guest type, product quality, ambiance, location, and much more! www.zagat.com First, choose a city. Then click on your specific restaurant criteria or just click on “Most Popular.” Then click on any restaurant for a review that includes a features list, reviewers’ ratings, prices, and much more! Look at several restaurant reviews. Evaluate whether you think the menu prices and the features/review are a “good fit,” in your opinion. Spend about 30 minutes viewing this site!arrow_forward
- 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_forwardSuppose 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…arrow_forwardPenetration pricing and price skimming are marketing strategies commonly implemented when companies launch new products or services. Both approaches have worked for businesses, but you have to understand how your price relates to your overall marketing and promotions strategies. Penetration pricing relies on a low upfront price to attract customers, while skimming is the use of high upfront prices to maximize short-term profits from the most eager and interested customers. Compare and contrast market skimming and market penetration pricing with the help of above definitions. Discuss how companies adjust their prices to take into account different types of customers and situations?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
