Explain cost-based and value-based pricing

Assignment Help Business Management

Reference no: EM13217284

1. What are the differences between cost-based and value-based pricing?

2. Pricing is based on customer perceptions of value and costs in addition to other internal factors. Discuss these other internal factors and how they might affect the pricing of a new Sony MP# player.
Explain why elasticity of demand is such an important concept to marketers who sell a "commodity product."

3. Why is product bundling pricing effective?

4. You are an owner of a small independent chain of coffee houses competing head-to-head with Starbucks. The retail price your customers pay for coffee is exactly the same as at Starbucks. The wholesale price you pay for roasted coffee beans has increased by 25%. You understand that you cannot absorb this increase and that it must be passed on to your customers. However, you are concerned about the consequences of an open price increase. Discuss three alternative price-increase strategies that address your concerns.

Reference no: EM13217284

Questions Cloud

Critical path that resulted from crashing the project : The shortest amount of time in which the project schedule can be crashed without exceeding $7K and the project critical path that resulted from crashing the project

Most significant challenges facing you as manager : what are the most significant challenges facing you as manager of this store and what steps would you take during the first 90 days as manager to address these challenges?

Conduct a comprehensive external environmental scan : Conduct a comprehensive external environmental scan of your business unit, including a five forces analysis, to identify the relevant trends that pose opportunities or threats to your business.

Establishment of customer service department : Establishment of customer service department to address client's issues and requirements and conducting daily meeting for particular projects to review the progress of the project and to open the floor for new idea and suggestions.

Explain cost-based and value-based pricing : What are the differences between cost-based and value-based pricing. Pricing is based on customer perceptions of value and costs in addition to other internal factors. Discuss these other internal factors and how they might affect the pricing of a..

Explain what is popular and what is truly the right thing : The text states, "a leader should do the right thing, as perceived b a consensus of reasonable people." How can an executive leader distinguish between what is popular and what is truly the right thing?

Creation of a dedicated customer service department : Project management were better prepared to engage in problem solving with the client because they were involved in the estimating stage of project planning.

Explain decision related to an hr policy or process : vide one example of a decision related to an HR policy or process, and determine the moral and ethical factors that management should consider when making the decision in question.

Complete the mps and mrp explosion : consider the master production schedule, bills of materials, and inventory data shown below. Complete the MPS and MRP explosion and identify what actions

User Account

All Pages