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 12.33C
Summary Introduction
Case summary:
For many years Company JC attracted customers who were attracted towards the discounts and promotions of products. The prices of the products earlier where deeply inflated to enable the firm to give the appropriate discount as expected by the consumers. The price was dramatically changed by the CEO Person RJ.
The reaction from the consumers was not as expected. The revenue of Company JC went down by 25% than the previous year. He was replaced by the new CEO Person MU. He returned to the familiar pricing strategy of Company JC.
To explain: If there is an ethical issue.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Toy'r'us
Discuss buyer reactions to pricing strategies employed in the toy retailing industry. How can you explain this reactions?
A computer printer sells for $376 after a 12% discount. What was its original (list) price? (Round to the nearest cent.)
What is the difference between loss leader and leader pricing?Give an example of when retailers would use each of thesepricing strategies
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
- 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)arrow_forwardCompare and contrast LVMH (LVMH Moët Hennessy – Louis Vuitton SE, also known as LVMH)’s pricing strategy with that of “accessible brands” such as Coach.arrow_forwardAs Director of Pricing for a mid-market retailer, Mary is struggling with her retail pricing strategy. Marys’ struggles, however, are familiar themes across retail today, like ‘getting shoppers in her stores and still driving profits’. So what’s Mary to do? More work, late nights? More spreadsheets? More status quo, or is it time to take pricing innovation for a test drive? For reference: https://youtu.be/HGhWnIb1nOYarrow_forward
- The Lilly Pulitzer brand of brightly colored dresses and resort themed designer items is the uniform of the preppy, Palm Beach set. Indeed, only select young women belonging to certain sororities in certain communities are allowed discounts on the $100 to $500 items. But Target created a buying frenzy by debuting its Lilly for Target collection in April 2015. Target’s Pulitzer line was composed of 250 items, such as Lilly dresses at $40, which sold out within minutes of launch, crashed the store’s Web site, and created a firestorm of negative online comments from customers. The long lines outside stores caused one manager to name the event “Preppy Black Friday,” likening it to the frenzied shopping day after Thanksgiving known as Black Friday. Most shoppers went home empty-handed because others scooped up as much as they could, emptying the racks within minutes. Items then sold on eBay for much higher prices. This type of launch is not new for Target. In 2011, the retailer launched a…arrow_forwardThe Lilly Pulitzer brand of brightly colored dresses and resort themed designer items is the uniform of the preppy, Palm Beach set. Indeed, only select young women belonging to certain sororities in certain communities are allowed discounts on the $100 to $500 items. But Target created a buying frenzy by debuting its Lilly for Target collection in April 2015. Target’s Pulitzer line was composed of 250 items, such as Lilly dresses at $40, which sold out within minutes of launch, crashed the store’s Web site, and created a firestorm of negative online comments from customers. The long lines outside stores caused one manager to name the event “Preppy Black Friday,” likening it to the frenzied shopping day after Thanksgiving known as Black Friday. Most shoppers went home empty-handed because others scooped up as much as they could, emptying the racks within minutes. Items then sold on eBay for much higher prices. This type of launch is not new for Target. In 2011, the retailer launched a…arrow_forwardHow 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).arrow_forward
- A retailer has one opportunity to purchase a holiday gift basket. The retailer buyseach basket for $10 and sells each basket for $25. Baskets left at the end of the season aresold to a discounter for $1. What is the underage cost?arrow_forwardOne of the easiest places to see the impact of the Internet on marketing is by looking at its effect on pricing decisions and consumer's perceptions of prices. Since its inception, the World Wide Web (WWW) has developed the reputation as being the place to shop to get the lowest prices. Why has this reputation developed? Why might it be possible to charge lower prices online? Are products really cheaper? To answer this last question, choose two products and find them for sale online (books, CD's, and software work very well). Calculate the total price that would be charged to your credit card, then go to a "brick and mortar" retailer and find prices for the same product there. Make your comparisons. Where is the cheapest place to buy the products that you have selected? What costs go into determining which place you buy your product? Are there any non-financial costs to shopping online? To off-line shopping?arrow_forwardDoes Trader Joe’s employ good-value pricing or value- added pricing? Explain.arrow_forward
- How do you create a 5-page informational brochure will include the following, Role of pricing decisions on the overall company and marketing strategies, Value-based pricing (value-in-use and value-in-exchange), Price skimming and penetration, Management of international distribution channels and logistics, Mass customization, Five aspects of communication, Social media mix, Viral marketing as a viable marketing tactic that can deliver a positive return on investment (ROI)?arrow_forwardIdentify two stores at which you shop, one of which uses everyday lowpricing and another that uses a high/low pricing strategy. Do youbelieve that each store’s chosen strategy is appropriate for the type ofmerchandise it sells and the market of customers to whom it isappealing? Justify your answer.arrow_forwardDollarama stores focus on serving buyers who have relatively modest means. This is an example of aconveniencebvalue pricingcmarket segmentationdtarget marketingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
