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1. Who advocated fixed pricing? Explain briefly when it started.
2. What is the difference of price and cost? From (a) point of view of a customer; and (b) point of view of the manufacturer. Provide a concrete example for each.
3. The marketing manager of a large truck manufacturer was surprised to learn that the price list generated by his department had little relation to the price that were actually charged to customers. The company's finance department often change the prices to conform to profit goals before the prices reached the company's sales force. The salespeople often gave customers discount to raise their sales volume. The operations manager made price adjustments to accommodate delays in promised shipping times.
a. Is this desirable or undesirable for the company? Defend your answer.
b. What can be done about this situation?
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