EBK PRINCIPLES OF MARKETING
17th Edition
ISBN: 9780134461427
Author: Armstrong
Publisher: YUZU
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Chapter 10, Problem 10.5DQ
Summary Introduction
To discuss: The meaning of price elasticity and the importance of the concept.
A pricing strategy considers portions, capacity to pay, economic situations, contender activities, trade margins and input costs, among others. It is focused at the characterized customers and against contenders.
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QUESTIONS ARE ABOUT THIS VIDEO:
Describe the cost-plus pricing method and discuss why marketers use it even if it is not the best method for setting prices. (AACSB: Written and Oral Communication)
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).
Chapter 10 Solutions
EBK PRINCIPLES OF MARKETING
Ch. 10 - Prob. 10.1DQCh. 10 - Prob. 10.2DQCh. 10 - Prob. 10.3DQCh. 10 - Prob. 10.4DQCh. 10 - Prob. 10.5DQCh. 10 - Prob. 10.6CTECh. 10 - Prob. 10.7CTECh. 10 - Prob. 10.8CTECh. 10 - Prob. 10.9ACCh. 10 - Prob. 10.10AC
Ch. 10 - Prob. 10.11ACCh. 10 - Prob. 10.12ACCh. 10 - Prob. 10.13ACCh. 10 - Prob. 10.14ACCh. 10 - Prob. 10.15VCCh. 10 - Prob. 10.16VCCh. 10 - Prob. 10.17VCCh. 10 - Prob. 10.18CCCh. 10 - Prob. 10.19CCCh. 10 - Prob. 10.20CCCh. 10 - Prob. 10.21CCCh. 10 - Prob. 10.22CCCh. 10 - Prob. 10.23MMLCh. 10 - Prob. 10.24MML
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- Got your eye on a new premium 32-inch Samsung television? Well, you better not purchase it in December—that’s when the price was highest on Amazon.com ($500 versus $400 in November or February). Most consumers know that prices fluctuate throughout the year, but did you know they even fluctuate hourly? You probably can’t keep up with that, but there’s an app that can. Camelcamelcamel is a tool that tracks Amazon’s prices for consumers and sends alerts when a price hits thesweet spot. This app allows users to import entire Amazon wish lists and to set desired price levels at which emails or tweets are sent to inform them of the prices. All of this is free. Camel makes its money from an unlikely partner—Amazon—which funnels price data directly to Camel. Camel is a member of Amazon’s affiliate program, kicking back 8.5 percent of sales for each customer Camel refers. It would seem that Amazon would want customers to buy when prices are higher, not lower. But the online behemoth sees…arrow_forwardDescribe the concept of price elasticity! Why it is for a monopoly less profitable to act inmarkets with high price elasticity? What can a monopolist or a firm with market power do, inorder to increase the profits? (use graphs)arrow_forwardSuppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy? This offer seems to be very good for consumers at first, but is it? Explain your answer.arrow_forward
- The Services industry is one of the most affected by the COVID-19 outbreak, and to be able to hype up the industry, think of new or innovative ways on how to help boost it. With given travel agency in Philippines called: Creative Travel Agency Discuss the proposed pricing strategies of your chosen company and compare them with their direct and indirect competitors. Choose 1 direct and 1 indirect competitor. Do not forget to cite your references/websites.arrow_forwardCOMPANY Case Target: From "Expect More" to "Pay Less" slowdown, posting quarterly increases in same-store sales of dose to 5 percent along with substantial jumps in profits. When you hear the term discount retail, two names that usually come to mind: Walmart and Target. The two have been compared so much that the press rarely covers one without at least mention- ing the other. The reasons for the comparison are fairly obvious. These corporations are two of the largest discount retailers in the United States. Category for category, they offer very similar mer- chandise. They tend to build their stores in close proximity to one another, even facing each other across major boulevards. But even with such strong similarities, ask consumers if there's a difference between the two, and they won't even hesitate. Walmart is all about low prices; Target is about style and fashion. The "cheap chic" label applied by consumers and the media over the years per- fectly captures the Íong-standing…arrow_forwardPremium audio brand Bose doesn't try to beat out its competition, by offering discounts or by selling lower-end, more affordable versions of its headphones. Instead, Bose creates high-quality products that merit the premium prices it charges-i.e., Bose creates products and experiences that customers simply can't get anywhere else. This is an example of: O a. Value-added pricing O b. Cost-plus pricing OC. EDLP O d. Good-value pricing O e. Target costing pricingarrow_forward
- How does BoltBus use a combination of penetration pricingand everyday low pricing (EDLP) to achieve its objectives?arrow_forward1. Please read the chapter-opening case “The Price of Free College” on page 381 and answer the following questions: What kind of marketing changes if any, are likely to change expensive cost to attend 4-year college degree programs? Any target marketing that you would suggest? What do think about the UC Regents or Cal-State Universities tuition pricing system? Do you have better pricing strategy you can recommend?arrow_forward4. Who are 401 Games' direct and indirect competitors? How competitive is this industry? Are there any general trends or changes you anticipate for this industry? 5. What is John’s current product mix? What are the options to change that in the future? 6. What is John’s current pricing strategy? Should he change it? Why? What about his place/distribution strategy? What options does he have? 7. What are John’s promotion activities? What else could he do? How effective would that be?arrow_forward
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