North America Europe-Africa Asia-Pacific Latin America Average Wholesale Price to Retailers ($/unit) Buyer Appeal Variables Generated from Product Design Decisions Retailer Support Budget (5000s) Projected Support Expenditures Per Unit Sold Advertising Budget (5000s) Website Displays/Info ($000s) Sales Promotions (number of weeks | % discount) Warranty Period (60 days, 90 days, 120 days, 180 days, 1 year) Expected Claim Rate (%) | Repair Cost ($000s) $ 230 $ 230 $ 235 $ 225 P/Q Rating 5.8 5.8 5.8✩ 5.8✩ No. Of Models 3 models 3 models 3 models 3 models $ 3,000 $ 3,150 $ 3,000 $ 2,500 $8.05 per unit $9.44 per unit $9.37 per unit $8.76 per unit $ 2,550 $ 2,550 $ 3,000 $ 5,000 $ 2,000 $ 2,000 $ 2,500 $ 2,500 2 wks 10% 2 wks 10% 3 wks 15% 3 wks 15% 90 days 90 days 60 days ✓ 60 days 9.2% $1,710 9.2% $1,530 5.8% $935 5.8% $835 Year 9 Year 10 Year 9 Year 10 Year 9 Market Segment Statistics Actual Proj. Actual Proj. Actual Year 10 Proj. Year 9 Year 10 Actual Proj. AC Camera Demand and Market Share Unit Demand (000s) 454.5 528.8 402.9 473.2 361.7 453.9 260.2 404.6 Market Share (%) 12.1% 13.5% 12.8% 14.4% 13.1% 15.2% 13.5% 19.5% Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Retail Outlets (number willing to carry Multi-Store Chains Online Retailers 62 61 59 62 52 61 46 57 144 162 130 148 107 130 93 116 the company's product line) Local Retail Shops 5,950 5,770 5,327 6,100 4,570 5,660 3,240 4,170 Competitive Assumptions Anticipated Industry Average Price to Retailers North America Europe-Africa Asia-Pacific Latin America $294 per unit $292 per unit $ 295 per unit $297 per unit Marketing Efforts in Year 10 P/Q Rating 5.8 5.8 5.8 5.8 Number of Models 3.0 models 3.0 models 3.0 models 3.0 models Retailer Support $ 8.90 per unit $ 8.70 per unit $ 8.60 per unit $8.80 per unit Advertising Budget $ 6,335 ($000s) $ 4,640 Website Displays $3,655 ($000s) $ 2,858 ($000s) ($000s) $ 3,777 $ 2,560 ($000s) ($000s) $ 2,617 ($000s) 1,835 ($000s) Sales Promotions 8 wks 13.5% 7 wks 12.3% 6 wks 12.1% 6 wks 11.9% Warranty Period 130 days 120 days 140 days 110 days

North America Europe-Africa Asia-Pacific Latin America Average Wholesale Price to Retailers ($/unit) Buyer Appeal Variables Generated from Product Design Decisions Retailer Support Budget (5000s) Projected Support Expenditures Per Unit Sold Advertising Budget (5000s) Website Displays/Info ($000s) Sales Promotions (number of weeks | % discount) Warranty Period (60 days, 90 days, 120 days, 180 days, 1 year) Expected Claim Rate (%) | Repair Cost ($000s) $ 230 $ 230 $ 235 $ 225 P/Q Rating 5.8 5.8 5.8✩ 5.8✩ No. Of Models 3 models 3 models 3 models 3 models $ 3,000 $ 3,150 $ 3,000 $ 2,500 $8.05 per unit $9.44 per unit $9.37 per unit $8.76 per unit $ 2,550 $ 2,550 $ 3,000 $ 5,000 $ 2,000 $ 2,000 $ 2,500 $ 2,500 2 wks 10% 2 wks 10% 3 wks 15% 3 wks 15% 90 days 90 days 60 days ✓ 60 days 9.2% $1,710 9.2% $1,530 5.8% $935 5.8% $835 Year 9 Year 10 Year 9 Year 10 Year 9 Market Segment Statistics Actual Proj. Actual Proj. Actual Year 10 Proj. Year 9 Year 10 Actual Proj. AC Camera Demand and Market Share Unit Demand (000s) 454.5 528.8 402.9 473.2 361.7 453.9 260.2 404.6 Market Share (%) 12.1% 13.5% 12.8% 14.4% 13.1% 15.2% 13.5% 19.5% Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Year 9 Year 10 Retail Outlets (number willing to carry Multi-Store Chains Online Retailers 62 61 59 62 52 61 46 57 144 162 130 148 107 130 93 116 the company's product line) Local Retail Shops 5,950 5,770 5,327 6,100 4,570 5,660 3,240 4,170 Competitive Assumptions Anticipated Industry Average Price to Retailers North America Europe-Africa Asia-Pacific Latin America $294 per unit $292 per unit $ 295 per unit $297 per unit Marketing Efforts in Year 10 P/Q Rating 5.8 5.8 5.8 5.8 Number of Models 3.0 models 3.0 models 3.0 models 3.0 models Retailer Support $ 8.90 per unit $ 8.70 per unit $ 8.60 per unit $8.80 per unit Advertising Budget $ 6,335 ($000s) $ 4,640 Website Displays $3,655 ($000s) $ 2,858 ($000s) ($000s) $ 3,777 $ 2,560 ($000s) ($000s) $ 2,617 ($000s) 1,835 ($000s) Sales Promotions 8 wks 13.5% 7 wks 12.3% 6 wks 12.1% 6 wks 11.9% Warranty Period 130 days 120 days 140 days 110 days

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter14: Pricing Strategies

Section14.5: Price And Perception Of Quality

Problem 1LO

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