Suppose that Rolex launches a huge advertising campaign with the theme that Rolex is the prem luxury watch that signifies high wealth, achievement and success. What is the best pricing strategy for Rolex? O Raise prices to extract more revenue from the new shoppers attracted by the advertising campaign Cut prices so that so that new shoppers will be surprised how cheap it is to buy a Rolex Cut prices of the most expensive solid gold Rolex watches while keeping prices of other watches constant. Set all prices so that the profit margin of every product is identical and high.

A retailer has one opportunity to purchase a holiday gift basket. The retailer buyseach basket for $10 and sells each basket for $25. Baskets left at the end of the season aresold to a discounter for $1. What is the underage cost?

Look at some real estate want ads in your newspaper. Enter the price of a two-bedroom home and a three-bedroom home. If you find some abbreviations you do not understand, ask your teacher.

Explain how a brand of a commonly purchased consumer packaged goods, such as toilet tissue, could be skim-priced?   A service provider has decided to charge his customers P5, 000 for every upholstery cleaning service. The customer thinks that it is a steal , since the service provider is doing a great job and thinks that it could have costed them at least P7, 000 had they agreed to the first service provider that they went to. The total cost to the provider is P2, 000 which include the cleaning materials and labor. Identify the ceiling price and floor price of the service. Should the service provider decide to increase his price to P6, 500, do you think it is still acceptable to the customer? Why?   Give an example of a situation where a price that is low with respect to the product’s VTC would not serve as an incentive to buy. What would be the implications of this for the use of a penetration strategy for pricing his product?   RESEARCH: What is a pioneer advantage? Describe…