Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
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Chapter 12, Problem 12.14A
Summary Introduction
To explain: The pricing strategy for the new business venture.
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Select a basis for pricing your product (cost, demand, and/or competition). How will you know when it is time to revise your pricing strategy?
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Does "value" mean the same thing as "low price"? How do these concepts differ?
Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value?
Why might the 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 of each.
(4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.
Chapter 12 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
Ch. 12 - Prob. 12.1QRCh. 12 - Prob. 12.2QRCh. 12 - Prob. 12.3QRCh. 12 - How is the concept of the value package useful in...Ch. 12 - Prob. 12.5QACh. 12 - Prob. 12.6QACh. 12 - Prob. 12.7QACh. 12 - Prob. 12.8QACh. 12 - Prob. 12.9AECh. 12 - Prob. 12.10AE
Ch. 12 - Prob. 12.11ACh. 12 - Prob. 12.12ACh. 12 - Prob. 12.13ACh. 12 - Prob. 12.14ACh. 12 - Prob. 12.15ACh. 12 - Prob. 12.16TECh. 12 - Prob. 12.17TECh. 12 - Prob. 12.18TECh. 12 - Prob. 12.19TECh. 12 - Prob. 12.20TECh. 12 - Prob. 12.21EECh. 12 - Prob. 12.22EECh. 12 - Prob. 12.23EECh. 12 - Prob. 12.24EECh. 12 - Prob. 12.25CCh. 12 - Prob. 12.26CCh. 12 - Prob. 12.27CCh. 12 - Prob. 12.28CCh. 12 - Prob. 12.29CCh. 12 - Prob. 12.30CCh. 12 - Prob. 12.31CCh. 12 - Prob. 12.32CCh. 12 - Prob. 12.33C
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- Can you offer different levels of products or services at different price points? Please identify pricing strategy and how would the customer react to it.arrow_forwardWhat are the five major categories of pricing strategies?Give at least two examples of specific strategies that fallinto each category.arrow_forwardDiscuss the following the Ebay company, Select a single product for your firm and set a price according to multiple pricing approaches. Cost-based: Use best estimates for materials and labor costs. Use a reasonable percentage of price as an estimate for all overhead expenses – usually from 10% to 50%. Economic Value to Customer: Describe how you determine this price level; then do so.arrow_forward
- Marketers may choose from various pricing strategies when selling a product or service. a) Identify and briefly explain five pricing strategies. b) What factors should be considered before selecting the best pricing strategy?arrow_forwardList the general approaches to pricing. Select examples of products that you regularly use. i. Notice the price of each of these items For each item, ii. State the main benefits you are looking for in using the product. iii. Does the price communicate the total benefits sought? iv. Does the product’s price suggest good value? v. Do you think the manufacturer or retailer is overcharging or undercharging consumers for the product?arrow_forwardin terms of marketing how would you identify and discuss the important internal and external factors affecting a business’s pricing decision. Use examples to illustrate your answerarrow_forward
- Develop 4 separate pricing policies for companies? Explain when they will be more suitable for use?Talk about 2 key pricing tactics for a new product?arrow_forwardRetailers typically use two basic pricing strategies. Explain the advantages of the two pricing strategies and provide examples for each type. When setting prices, what are some important factors that retailers must consider?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 smooth entry.What is your understanding of this paragraph? What is Nike recommended to do from this?arrow_forward
- Discuss three factors that affect pricing decisions for marketers (Value-Based Pricing, Cost-Based Pricing, and Competition-Based Pricing).arrow_forwardHow to Choose a price strategy to help determine a base price?arrow_forwardHow does cost-plus pricing strategy affect the company's performance and how they benefit from this?arrow_forward
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