Bundle: Contemporary Marketing, Loose-Leaf Version, 17th + LMS Integrated MindTapV2.0 Contemporary Marketing, 1 term (6 months) Printed Access Card
17th Edition
ISBN: 9781337493819
Author: BOONE, Louis E., Kurtz, David L.
Publisher: Cengage Learning
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Chapter 15, Problem 2CTE
Summary Introduction
To discuss: Whether the mark down experiment is the test of pricing strategy and what makes the retailers to offer the deep discounts.
Mark down refers to the amount, which the retailer decreases from the original price of a product.
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Based on a retail store that sells clothing for the age between 8 and 40 years .
Identify your predominant price strategy, apart from odd pricing, that youintend to use. Justify your choice.
Explain how you intend to limit the number of mark-down.
Is subscription pricing likely to be as popular withcust- omers as it is becoming with many product suppliers?Why or why not?
Recall your past experiences. Have you been given discounts for goods youbought? When and in what occasion? When do sellers give discount? Give anexample and illustrate how it is computed. Give also an illustration of how selling price is determined.
Chapter 15 Solutions
Bundle: Contemporary Marketing, Loose-Leaf Version, 17th + LMS Integrated MindTapV2.0 Contemporary Marketing, 1 term (6 months) Printed Access Card
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- company sends people to shop at similar retailers to make sure it is charging comparable prices. What pricing strategy does company employ? A. Market Penetration B. Price Skimming C. Going Rate D. Loss Leaderarrow_forwardToy'r'us Discuss buyer reactions to pricing strategies employed in the toy retailing industry. How can you explain this reactions?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_forward
- Your management has requested you to suggest different types of food retailers for new retail investment. Based on any THREE (3) different types of food retailers of your choice, evaluate their characteristics in reference to (1) the size of stores, (2) the variety and assortment of the merchandise, and (3) the pricing method.arrow_forwardDollarama stores focus on serving buyers who have relatively modest means. This is an example of aconveniencebvalue pricingcmarket segmentationdtarget marketingarrow_forwardA computer printer sells for $376 after a 12% discount. What was its original (list) price? (Round to the nearest cent.)arrow_forward
- McDonald’s sells Happy Meals for as low as $2.50 and Value Meals for as high as $5.50. How would you describe this pricing strategy? What segmentation variables are being used?arrow_forwardFancy Fashions sells jeans for $59 and sweaters for $39, To increase sales of jeans and sweaters, Fancy Fashions promotes this Product Price Bundle: "Buy a pair of jeans and a sweater for $98'. Will this Product Price Bundle will work well to increase the sales of jeans and sweaters? Explain your answer in no more than 2 bullet points.arrow_forwardExplain the concept of “everyday low pricing” used by supermarket chain Puregold. Evaluate the advantages and disadvantages of this concept.arrow_forward
- Why do marketers use this ‘just-below’ pricing tactic?arrow_forwardHow is product-line pricing helpful to both retailers and theircustomers?arrow_forward"Home Shopping" TV channels normally offer products that viewers will not get to see anywhere else. Discuss the implication of this on their product prices.arrow_forward
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