Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
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Chapter 9, Problem 9.13MA
Summary Introduction
Case summary:
Company AF was once a favorite for the teenage people, which is now considering lesser costs on all the items it sells as to win them back after few years of decline in the sales. The total sales was $4 billion in the previous year, but they have been decreasing in a weak economy and an intensively competitive environment.
The cost deductions are usually effective in maximizing the sales. However, the marketer is required to assess the amount of sales that must rise before the reduction in price pays off and rises the income enough to make it worth doing.
Characters in given case:
Company AF
To calculate: The amount of increase in the sales.
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Got your eye on a new premium 32-inch Samsung television? Well, you better not purchase it in December—that’s when the price was highest on Amazon.com ($500 versus $400 in November or February). Most consumers know that prices fluctuate throughout the year, but did you know they even fluctuate hourly? You probably can’t keep up with that, but there’s an app that can. Camelcamelcamel is a tool that tracks Amazon’s prices for consumers and sends alerts when a price hits thesweet spot. This app allows users to import entire Amazon wish lists and to set desired price levels at which emails or tweets are sent to inform them of the prices. All of this is free. Camel makes its money from an unlikely partner—Amazon—which funnels price data directly to Camel. Camel is a member of Amazon’s affiliate program, kicking back 8.5 percent of sales for each customer Camel refers. It would seem that Amazon would want customers to buy when prices are higher, not lower. But the online behemoth sees…
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Marketing: An Introduction (13th Edition)
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