Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 12, Problem 12.16TE
Summary Introduction
Summary:
Person X is a member of a team of business students who are to develop a small business which is selling mobile phone cases. They have made a deal with a manufacturer from Country IA which can give attractive and durable cases at a low cost. Person X has to decide on the pricing strategy.
To develop: The Pricing strategy for each approach and its benefits.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Over the past year, you and your friend have decided to embark on a new business venture, you have created a new recipe for baked bread. You are currently paused at the pricing stage, considering that there are no specific guidelines for setting the right price. Outline 5 aspects that you need to consider when developing a price of your new product offering. Justify your answer
If an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.
None
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.Similar questions
- Can I get assistance with the following Over the past year, you and your friend have decided to embark on a new business venture, you have created a new recipe for baked bread. You are currently paused at the pricing stage, considering that there are no specific guidelines for setting the right price. Outline 5 aspects that you need to consider when developing a price of your new product offering. Justify your answer.arrow_forwardOnce a company determines a base price, a series of price tactics are often offered to help fine-tune the base price to make sure it satisfies the company and customer. List the four basic price tactics and define each one.arrow_forwardDoes "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.arrow_forward
- A product is a set of attributes and benefits designed to satisfy its market while earning a profit for its seller. Pricing is an integral part of this equation. What factors must be considered when pricing products and how a price change affects a product's demand and supply?arrow_forwardCan 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_forwardUsage-based pricing (UBP), also known as consumption-based pricing, is a pricing model that enables customers to pay for a product according to how much they use it. The metric used to measure usage corresponds to how the customer is extracting value from the product. True or False?arrow_forward
- Illustrate a simple price strategy for a retail sports company for one of its products using at least 2 common pricing objectives and pricing strategies. Give reasons for your suggestions and why you think this is the best recommendation for a retail organisation.arrow_forwardExplain how a brand of a commonly purchased consumer packaged goods, such as toilet tissue, could be skim-priced? A service provider has decided to charge his customers P5, 000 for every upholstery cleaning service. The customer thinks that it is a steal , since the service provider is doing a great job and thinks that it could have costed them at least P7, 000 had they agreed to the first service provider that they went to. The total cost to the provider is P2, 000 which include the cleaning materials and labor. Identify the ceiling price and floor price of the service. Should the service provider decide to increase his price to P6, 500, do you think it is still acceptable to the customer? Why? Give an example of a situation where a price that is low with respect to the product’s VTC would not serve as an incentive to buy. What would be the implications of this for the use of a penetration strategy for pricing his product? RESEARCH: What is a pioneer advantage? Describe…arrow_forwardWhich pricing objectives will you use for your product? Consider the product life cycle, competition, and product positioning for your target market during your discussion. PlayStationarrow_forward
- Assume you are an entrepreneur of a new home technology product, how you can set your pricing policy? What are the main considerations in the determination of the price?arrow_forwardTrade discounts for televisions that have list price of $250.00 are 15%, 10% and 8%. Find the billed cost for the television.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
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MarketingMarketingISBN:9780357033791Author:Pride, William MPublisher:South Western Educational Publishing
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning