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You actually bought THAT?
You and a group of your co-workers take a long lunch on Friday and visit the local mall for a quick snack and some speed shopping. Being polite and valuing your co-worker's friendship, you don't burst out in laughter when you see what is unmistakably the most hideous blouse in the history of Macy's, not to mention how much she paid for it! Clearly, you have MUCH better taste. Sorry, it's not that simple. Consumer behavior, or why we buy what we buy, is complex and influenced by our culture, family values, self-image, and attitudes (just to name a few factors). Paying special attention to the characteristics of buying behavior, consider the product you are using for your marketing plan. Which of the factors influencing consumer buying behavior best fits your product, and how do the factors drive the consumer's likelihood to purchase? (For insights into this, be sure to read Real Marketing 5.1 and 5.2). Is culture important to your buyer behavior? How about self-concept or lifestyle? Are there psychological motivations? Be specific and give examples supporting your decisions.
The firm employs 300,000 direct labor hours and incurs $400,000 of fixed overhead. Given a markup of 30 percent, compute the price charged for each moldboard plow using the absorption cost method.
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