User Account

All Pages

Why us consumers are not overly price sensitive

Assignment Help Macroeconomics
Reference no: EM131210421

Assignment

Video Case FOUR

Instructions

Source: People and Blogs (2011). Root Candles Sheds Light on Its Pricing Decisions. Retrieved from https://www.youtube.com/watch?v=cn82ij7evFg

This video explains the pricing method used by Root Candles to price the product it manufactures-candles sold under the family brand name of "Root Candles." A number of pricing concepts are explained in the video: markup pricing, variable and fixed costs, price sensitivity, and price reductions. The influence of competition on pricing, in particular foreign competition, is addressed. The U.S. candle industry has been successful in getting antidumping duties assessed on petroleum wax candles from China, in 1985 and again in 2004. Bob Krulik, Vice President and General Manager, also talks about the impact of a material cost increase on profits when price cannot be increased.

After watching the video case, please answer the following questions:

1. Using the factors identified by marketing researchers that influence price sensitivity, explain why U.S. consumers are not overly price sensitive when it comes to buying candles.

2. What other pricing methods could Root Candles realistically use to price its candles?

3. How might Root escape the price-cost pressures it is experiencing with votives?

All assignments will be submitted/uploaded via D2L on the date the assignment is due; any late assignment will be subject to a letter grade reduction unless an extension has been negotiated with the professor prior to the due date. In all written assignments, the quality of your writing and the application of APA format will be evaluated in addition to your content. Evaluation based on these criteria is designed to help prepare you for preparing your college projects, which must be well written and follow APA guidelines. Each written assignment should contain between 200-350 words. Make sure that you will use correct spelling, grammar, and punctuation.

Reference no: EM131210421

Questions Cloud

Discuss possible ramifications of these opposing objectives : you may come back to this question after having read chapter 9 or (Hirschheim and Klein, 1989).
What are the advantages of a contractual channel system : From the point of view of PepsiCo, what are the advantages of a contractual channel system over a traditional or administered channel system?
Shortcomings and remedies to improve their quality : PP Study both the technical and user documentation of a system at your disposal. Are you satisfied with them? Discuss their possible shortcomings and give remedies to improve their quality.
Change in income and change in interest rate affect spending : Both changes in income and changes in the interest rate affect spending. -Which has a greater effect? Explain.
Why us consumers are not overly price sensitive : Using the factors identified by marketing researchers that influence price sensitivity, explain why U.S. consumers are not overly price sensitive when it comes to buying candles.
Identify the independent and dependent variables : What were some variables the researchers controlled in their study? Why was this necessary? What evidence do the researchers offer as a test of their hypothesis? Is this evidence empirical (observable)? Is it valid?
How is leverage ratio related to the borrowing constraint : What are some of the factors that determine whether a firm chooses internal or external financing? How is the leverage ratio related to the borrowing constraint?
Is the design rationale reflected in the technical document : Can you build an understanding of the system from its documentation that is sufficient for making non-trivial changes to it? Repeat these questions for a system written by one of your colleagues.
A firm ever use short term debt to finance long term capital : Would a firm ever use short- term debt to finance long- term capital expenditures?- How should the government decide whether to increase or decrease its purchases of goods and services?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd