MARKETING:REAL PEOPLE,REAL CHOICES
10th Edition
ISBN: 9780135199893
Author: Solomon
Publisher: RENT PEARS
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Chapter 10, Problem 15QA
Summary Introduction
To explain: The psychological aspects of pricing.
Introduction: For customers, price is not only an amount which is being paid for a commodity or a service rather this single term has many different meanings. The customers often associate higher price to good quality and lower price to cheaper quality. Such
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MARKETING:REAL PEOPLE,REAL CHOICES
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- Explain how a firm can increase its profit by price discriminating. How does it determine optimal prices? How does the existence of substitute products affect the firm’s pricing policy?arrow_forwardThe three factors that affect pricing decisions for marketers are: Value-Based Pricing, Cost-Based Pricing, and Competition-Based Pricing. Explain them.arrow_forwardWhat does ͞price mean and what are the objectives of pricing? What is the pricing procedure? What does it consist? What must be considered first before setting the price? What are the various approaches to pricing? What is the purpose of ͞target rate of return pricing? What is ͞odd-numbered pricing͟? What are the reasons behind this method? What are price adaptation strategies? Why are discounts given to customers? What is the degree of control over price by the seller in a monopsony? Why is this so?arrow_forward
- Explain the term FOB-origin pricing?arrow_forwardhink of the various pricing methods - mark-up pricing, target-return pricing, perceived value pricing, value pricing, going rate pricing, and auction-type pricing. As a consumer which method do you personally prefer to deal with. Why? If the average price were to stay the same, which would you prefer: (1) for firms to set one price and not deviate, or (2) to employ slightly higher prices most of the year, but slightly lower discounted prices or specials for certain occasions.arrow_forwardRetailers often use psychological pricing as a price-adjustment strategy. Explain this pricing strategy. How do reference prices affect psychological pricing decisions?arrow_forward
- Is dynamic pricing ethical?arrow_forwardExplain these psychological aspects of pricing: pricequality inferences, odck,ven pricing. internal referenceprice. price lining, and prestige pricingarrow_forwardExplain what is 'psychology pricing' and discuss three types of psychology pricing. Support your answer with an example how the psychology pricing had been implemented for each type.arrow_forward
- Explain why might 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 for each?arrow_forwardIt is recommendable that the Company uses product and pricing strategy, which can provide a twin approach (Koester, 2011) The strategy should focus on ensuring smooth entry of a new product within a targeted marketplace as well as strengthening prices as the product continue to establish itself within the product life cycle. To this end, it is recommendable that the company uses introductory pricing strategies to facilitate a smoot entry. What is you understanding of this paragragh? What is Nike recommended to do from this?arrow_forward
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