What other factors besides price should be considered before changing your purchasing procedures? Suppose you are the purchasing manager for a company that manufactures scanners and other computer peripherals. Your vendor for scannermotors is now offering "quantity discounts" in the form of instant rebates and lower shipping charges as follows.Quantity1-500 motors501-1,000 motors1,001-2,000 motorsNet Price$16501-1,000 motors15.701,001-2,000 motors $ 14.801616Rebatenone$1.402.00Shipping$1.501.100.80(a) Calculate the cost of the motors, including shipping charges, for each category (in $).1-500 motors$17.50(b) If you usually purchase 400 motors per month, what percent would be saved per motor by ordering 800 every two months? Round to thnearest tenth of a percent.10.29%(c) What percent would be saved per motor by ordering 1,200 every three months? Round to the nearest tenth of a percent.15.43%(d) How much money (in $) can be saved in a year by purchasing the motors every three months instead of every month?$(e) What other factors besides price should be considered before changing your purchasing procedures?

Purchasing Decision The process of selecting a product and brand by a consumer after they have…

Answered: What other factors besides price should…

What other factors besides price should be considered before changing your purchasing procedures?

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

Similar questions

A bait‐price item has a particularly low price and is widely advertised. Whencoming to buy the item, consumers are encouraged to buy a far more expensive item. Why are bait‐prices considered to be unethical?
Describe why ownership costs, operating cost, and acquisition costs are important when evaluating a major purchases and how these should factor into the decision making process.
Why or why not should food and wine be in a similar price range when matching them?
What is The Sacrifice Effect of Price?
How can retailers create effective pricing strategies that balance profitability with customer value?
When making a pricing decision, what other factors should a retailer consider?
What is the difference of price and cost? From (a) point of view of a customer; and (b) point of view of the manufacturer. Provide a concrete example for each.
Understand the key objectives of any supply management function?
What are the advantages of sending price change orders ahead of time?
when might a company adopt a market penetration pricing strategy ?
How price competition can be avoided ?
What are the medium of price differentiation ?