MyMarketingLab with Pearson eText -- Access Card -- for Marketing: An Introduction
13th Edition
ISBN: 9780134132358
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
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Chapter 9, Problem 9.15VC
Summary Introduction
Case summary:
There appears a battle between the food chain stores like Restaurants W, MC, BK and other competitors are enormously trying to trap their consumers with low price tempting meals. Though this technique is not new it is more popular than ever before. This method helped other restaurants like Restaurant OG.
Characters in the case:
- Restaurant W, MC, BK
- Restaurant OG
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.
To determine: Whether the discount menu strategies can be classified as “value pricing”.
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MyMarketingLab with Pearson eText -- Access Card -- for Marketing: An Introduction
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- Only typing answer 3. IKEA has been apractitioner of value pricing (i.e., win loyal customers by charging a fairly low price for a high-quality offering). Visit the IKEA website. Does the website enhance the firm’s ability to continue with value pricing? Is value pricing just a matter of simply lowering prices? Describe viable target markets for IKEA. Has IKEA changed the way people shop for furniture? Explainarrow_forward1. Suppose you are an entrepreneurial company engaged in the manufacture of smart phones. What pricing strategy would you adapt that you believe would best serve your objective? Explain. 2. What department/unit in an enterprise (ex. operations, finance etc.) is the most difficult to manage? Support your claim.arrow_forwardPricing Determined by Buyer Behavior 1. How do you price? 2. Should it be low, moderate or high? (please answer the attached pic below) 3. Explain briefly your choice.arrow_forward
- 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_forwardWhich of these is an accurate observation about pricing in today's business environment? A) The internet empowered buyers but doesn't help resellers optimize their pricing. B) Across industries and regions, most companies now use the same pricing methods. C) Many companies do not handle pricing well and fall back on familiar methods that aren't as effective as they should be. D) With ubiquitous online price matching, pricing decisions are more or less automatic these days. E) The hope of offering personalized price promotions hasn't really panned out.arrow_forwardHow do you create a 5-page informational brochure will include the following, Role of pricing decisions on the overall company and marketing strategies, Value-based pricing (value-in-use and value-in-exchange), Price skimming and penetration, Management of international distribution channels and logistics, Mass customization, Five aspects of communication, Social media mix, Viral marketing as a viable marketing tactic that can deliver a positive return on investment (ROI)?arrow_forward
- 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.arrow_forwardWhat is the main (most important) way that Cost-Based Pricing is different from Customer Value-Based Pricing? Would the cost of coffee beans purchased by McDonald’s be a Fixed Cost or a Variable Cost?arrow_forwardHow do marketers customize pricing with pricing segmentation, peak load pricing, and surge pricing? How can marketers price to meet the need of bottom of the pyramid consumers?arrow_forward
- Go online to a shopping site you use regularly and note theprices for different types of products. Does this firm usepsychological pricing? Product line pricing? Note any pricingstrategies you can identify. Do any of these strategies makeyou prefer the site over a competitor’s site?arrow_forward1. As an entrepreneur, one of the most significant and strategic decisions you will ever make during the life cycle of your new venture will be one of selecting your pricing approach and setting your initial price. Few decisions have such wide-ranging implications for the success of the venture, especially as this decision directly impacts every area of the business, such as customer acquisition, the break-even point, and profitability. Research several newly emerging start-ups that are focused on product-based offerings for the consumer sector that you find interesting. Select one and in a two-page paper using the principles from the text, identify, assess, outline, and analyze the totality of the pricing models, pricing strategies, and pricing decisions. Also include whether you agree with each and be sure to explain your answer (if you do not agree, indicate what changes would you make).For ENTR550, Entrepreneurial Marketing at Keller School of ManagementAPA format, include…arrow_forwardIn 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 fixingarrow_forward
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