MARKETING
7th Edition
ISBN: 9781260087710
Author: Grewal
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 2CCS
Summary Introduction
Case summary:
Case study is about the dominant Pizza players in the Country U based on their pricing tactics and market share.
Company J is the fourth largest pizza restaurant franchise in Country U and it tries to offer the lowest prices in a market. It brings up the prices to customers a lot of in line with competitor’s costs and it has introduces the products with quality guarantee. Finally it tries to seek several innovations to get consumer calling for an order.
Company L is the third largest pizza chain in Country U. It offers the pizza based on convenience and their advertisement campaigns are often features unrealistic sequences.
Company D relies on its delivery reputation and starts by delivery through mobile commerce capabilities. It utilizes the mobile better than the other competitors and doesn’t change its pricing strategy.
Company P is the biggest player in Country U pizza chain by creating a promotion and pricing strategies. It focused importance on making easier to get a better pizza.
Thus, the rest of pizza occupies more than 60 percent of pizza chain market share
Characters in the case:
- Company J
- Company L
- Company D
- Company P
To discuss: Effect of current price wars on pricing tactics that are used by major pizza chains.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In an effort to build immediate sales increase for their new running shoes quickly in a short period, Sprinters Inc. set the initial price of the shoes very "low". What type of pricing does this reflect?
bundling
reference
market penetration
skimming
price fixing
Describe the concept of price elasticity! Why it is for a monopoly less profitable to act inmarkets with high price elasticity? What can a monopolist or a firm with market power do, inorder to increase the profits? (use graphs)
Please solve Fast i give 2 like
Regarding resale price maintenance, draw a graph and explain how displaying and showing your firm's shoes to customers by the competitive retailers affect the market. Explain how these strategies affect your firm and the retailers. Explain if the retailers make zero profits.
Knowledge Booster
Similar questions
- How can you attack Walmart because of its aggressive pricing actions? Note: By believing that Walmart forced a new kind of shopping experience upon a community and robbed them of a way of shopping they used to have (international hypermarket replacing local independent businesses). You should argue that a way of shopping that has been eliminated from the community by Walmart was a better way of shopping. (give your reasoning for believing that Walmart is wrong).arrow_forwardFor Honda Motors, a passenger automobile manufacturer, could an increase in demand for cars or a reduction in price of rubber affect the demand of rubber tyres? What is this type is of demand called? Bring out relationship between various types demand and price in Business markets Explain brieflyarrow_forwardIn a discussion on Facebook, people were complaining about the high prices of tickets to Major League Baseball Spring Training games. Due to continued concerns about the COVID-19 virus, teams are allowing only a small number of tickets to be sold to each game. According to one comment, “Unfortunately, the reduced supply of tickets has driven up the demand for tickets and so price has gone way up.” Explain whether this statement does or does not make good Economic sense: does a reduced supply drive up demand, leading to an increase in price?arrow_forward
- it is from past exams, please help me in doing my homework One way of wading off competition is for Take-a-lot to tactfully adjust prices to their advantage. Discuss how Take-a-lot can implement price adaptation tactics to maintain its competitive edge.arrow_forwardWhat is price elasticity? Why is it important for marketers to consider price elasticity when making pricing decisions? (AACSB: Written and Oral Communication; Reflective Thinking)arrow_forwardThe cost of doing business and establishing retail pricing are directly related to a business’s bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2.Why do you believe that to be the case? 3. Why is it important that a company’s pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).arrow_forward
- A business knows that over a long-term period of time, it must ultimately set its prices above what factors? Explainarrow_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_forwardWhat is the best way Amazon can improve its ROA (and still keep its strategic fit)? what is the meaning of differential pricing. Find an online retailer who uses differential pricing for some of its products. Include screenshots of the retailer website showing differential pricingarrow_forward
- Which industry is most likely to adopt an experience-curve pricing approach? Multiple Choice advertising electronics ready-to-eat cereal space exploration miningarrow_forwardshort answer Moving on from Product to Price, review the following pricing strategies. A skimming strategy prices the product high to make big profits while there’s little competition. A penetration strategy uses low price to attract more customers and discourage competitors. Demand-oriented strategy starts with consumer demand rather than cost. Competition-oriented strategy is based on all competitors’ prices. Price leadership strategy attempts to force all competitors to follow the pricing strategy of one or more dominant companies within an industry. What pricing strategies do you see being emphasized in marketing activities today? Give a specific example of a product that is obviously priced according to one of the pricing strategies listed above.arrow_forwardList ways to avoid the following reasons for businesses failure; mismanaging money, poor marketing, no business plan and no understanding of pricingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
