Essentials of Business Communication (MindTap Course List)
11th Edition
ISBN: 9781337386494
Author: Mary Ellen Guffey, Dana Loewy
Publisher: Cengage Learning
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Chapter 6, Problem 6.12AAC
Summary Introduction
To Determine:
A direct claim letter to the Regional manager at the digital depot to sell the TV for less than the advertised price.
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A1
The corporate leadership team inquired about the use of a "price match guarantee". This policy would mean A+ Rental Cars will match our competitor's price for a certain vehicle category if their price is lower than ours. Please comment on the viability of the this policy. Is it a good idea? Why or Why not? You woke up this morning to a troubling advertisement on TV: A+ Rental Cars' local competitor is discounting their economy rentals. After doing a little digging, you discover that your competitor has launched an aggressive advertising campaign, reducing the price on their economy line from $32.99 to $24.99. Based on your knowledge of previous pricing practices, you expect a similar price reduction across all vehicle types.
QUESTION 31
Which of the following factors is important in managing perceived value?
a. Perception sometimes doesn’t reflect reality.
b. Value is a nebulous concept to most people.
c. Different customers have different perceptions.
d. Competitive pricing is a major determinant of value.
Your friend Kevin just bought a shirt and tie that you think are ridiculous, and you need to tell him politely that they just won’t work. You think back quickly to what you know from marketing about the customer experience. Which of the following would NOT be considered an individual influence of the customer experience that can help you figure out what to say?
a. You know the store where he purchased it would exchange the shirt and tie if he explained why he needs to return it.
b. You know he is old enough to make purchases on his own
c. You know he can afford it.
d. You know he is single and does not live with his family who might give him advice.
part 1
Explain why a product or service’s contribution (selling price minus variable cost) is an important element in developing a marketing strategy, giving examples to illustrate your answer. You can use any example including those covered in the module such as the Strategist Simulation or any of the other case studies examined.
part 2.
Imogen, the brand manager for ‘Skinsoft’, was reviewing price and promotion alternatives for her brand. She wanted to increase market share, but was unsure whether she should ask for an increase in advertising budget or consider a price promotion.
The current volume, price, and cost summary for ‘Skinsoft’ follows:
Skinsoft
Unit Price
£2.00
Unit Variable Cost
£1.40
Unit Volume
1,000,000
Imogen thought she might be able to negotiate with her boss and secure either a temporary 10 percent price reduction, or an investment of an incremental £150,000 in advertising.
a. What absolute increase in unit sales and revenue would be necessary to…
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Essentials of Business Communication (MindTap Course List)
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