Marketing
14th Edition
ISBN: 9781259924040
Author: Roger A. Kerin, Steven W. Hartley
Publisher: McGraw-Hill Education
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Question
Chapter 13, Problem 2AMK
Summary Introduction
To determine: The responses to the given statement “profit maximization is the only legitimate pricing objective for the firm”.
Introduction:
Profit is a gain from the business to an organisation. The gain for the organization comes from business activities that exceed the costs, taxes, and expenses.
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What would be your response to the statement," Profit maxmization is the only legitimate pricing objective for the firm"?
Insights about "Good pricing involves finding a balance between the customer's desire to obtain good value, and the company's need to cover costs and earn profits"
Although more than one strategy can achieve profitable results, even within the same industry, nearly all successful pricing strategies embody three principles. They are value-based, proactive, and profit-driven.
True or False?
Chapter 13 Solutions
Marketing
Ch. 13.1 - Prob. 13.1LOCh. 13.1 - Prob. 13.1LRCh. 13.1 - Prob. 13.2LRCh. 13.1 - Prob. 13.3LRCh. 13.2 - Prob. 13.2LOCh. 13.2 - Prob. 13.4LRCh. 13.2 - Prob. 13.5LRCh. 13.2 - Prob. 13.6LRCh. 13.3 - Prob. 13.3LOCh. 13.4 - Prob. 13.4LO
Ch. 13.4 - What is the difference between a movement along a...Ch. 13.4 - Prob. 13.8LRCh. 13.4 - Prob. 13.9LRCh. 13.5 - Prob. 13.5LOCh. 13.5 - Prob. 13.10LRCh. 13.5 - Prob. 13.11LRCh. 13 - Prob. 1AMKCh. 13 - Prob. 2AMKCh. 13 - Prob. 3AMKCh. 13 - Prob. 4AMKCh. 13 - Prob. 5AMKCh. 13 - A student theater group at a university has...Ch. 13 - Prob. 7AMKCh. 13 - Prob. 8AMKCh. 13 - Prob. 9AMKCh. 13 - Prob. 1BYMPCh. 13 - Prob. 2BYMPCh. 13 - Prob. 3BYMPCh. 13 - Prob. 1VCCh. 13 - Prob. 2VCCh. 13 - Prob. 3VCCh. 13 - Prob. 4VCCh. 13 - Prob. 5VC
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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
- Which 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_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_forwardHow does the target cost method differ from the cost-plus pricing method? Which would you prefer? Are there any other pricing methods that are appealing to you?arrow_forward
- what is the best pricing strategy for a start-up?arrow_forwardWeek after week, consumers shop for many of the same groceries. At some point, the product may be priced the same and look the same as before but with less in the package. If consumers are not made aware of the change, is this deception? Is this different from deceptive pricing? Explain.arrow_forwardthe challenge with using this pricing scheme is determining an accurate relationship between the price per unit and the quantity demanded. a. market-based pricing b. cost plus pricing c. percentage of mark-up d. target costingarrow_forward
- Discuss the importance of market segmentation in pricing strategy. Please cite examples to support your answer.arrow_forwardList ways to avoid the following reasons for businesses failure; mismanaging money, poor marketing, no business plan and no understanding of pricingarrow_forwardBeing at the premium end is category upon itself. Describe the indicator of premiumness or high quality and high price that can apply to most types of productsarrow_forward
- At a strategic meeting of your company, other managers in the meeting want to know the company’s pricing objectives. Asthe manager responsible, critically analyse alternative pricing objectives the company is pursuing.arrow_forwardList and briefly explain what internal factors companies must consider for pricing decisions. How important are these, in your opinion?arrow_forwardWhat are the advantages and disadvantages for each pricing strategy?arrow_forward
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