Principles of Marketing (16th Edition)
Principles of Marketing (16th Edition)
16th Edition
ISBN: 9780133795028
Author: Philip T. Kotler, Gary Armstrong
Publisher: PEARSON
bartleby

Concept explainers

Question
Book Icon
Chapter 11, Problem 11.19CC
Summary Introduction

Case summary:

Company CH is the main vender of handbags in the Country U selling $5 billion organization worth of handbags each year. All financials have developed strongly in the past 4 years. Company CH has made this progress through value added pricing. Quality, style or design, the value of the brand has grown-up. The bags are expensive; however moderate to even cheap contrast with the higher-end stuff from Company PD and Company GC and other brands. It is optimistic, yet inside reach.

The issue the organization currently faces is that it is losing share in the Company U. Different elements add to this, including expanded competition. But, there is additionally criticism that Company CH may have overestimated exactly how high of a price customers are eager to pay. This case analyses the difficulties a premium-priced brand faces as it ends up mainstream across demographics.

Characters in case: Company CH, Company PD, Company GC and Company U.

To discuss: The ways price affects customer perceptions of Company CH.

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.

Blurred answer
Students have asked these similar questions
• provide 10 unique niche market and identify its target audience, competition, and product offerings related to the ideas.
How can I solve this financial accounting problem using the appropriate financial process?
Base Ethical dilemma teaser. ABC Plastics Co. contracts with NASA to manufacture component parts used in communications satellites. NASA reimburses ABC on the basis of the actual manufacturing costs it incurs, plus a fixed percentage. Prior to being awarded a contract, ABC must submit a bit that details the estimated costs associated with each project. An examination of ABC's job cost sheets reveals that actual costs consistently exceed cost estimates quoted during the bidding process. As a consequence, NASA ends up paying considerably more than the bids ABC submits. An ABC representative was recently quoted as saying, "We really aren't overcharging NASA for the work that we do. The actual costs shown on our job cost sheets seem high only because we are forced to understate our bid estimates in order to be awarded contracts. It's a common practice, and everybody does it. The truth of the matter is companies that quote realistic bid prices are not awarded contracts." Let us assume that…
Knowledge Booster
Background pattern image
Marketing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles Of Marketing
Marketing
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Pearson Higher Education,
Text book image
Marketing
Marketing
ISBN:9781259924040
Author:Roger A. Kerin, Steven W. Hartley
Publisher:McGraw-Hill Education
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Marketing: An Introduction (13th Edition)
Marketing
ISBN:9780134149530
Author:Gary Armstrong, Philip Kotler
Publisher:PEARSON
Text book image
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:9781337407595
Author:Lamb
Publisher:Cengage
Text book image
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning