Chapter 12 & 13
2- Well in my own words I am going to try to explain price and non-price competition with a scenario/ example.
Wal-Mart is definitely the best (in my opinion) using the price competition approach against its competitors which is pretty much all kind of business out there from groceries, electronics, auto and others. They have what they call a “low price guaranty” and the “matching price” on others. This is one of the most aggressive pricing strategies out there.
On another hand, you have a company like Brookshire’s, in Tyler which definitely cannot compete which so a big market like Wal-Mart so they approach is a non-price competition because their focus is more ...view middle of the document...
There are lots of things that can influence the pricing in a product. The book has an excellent example; when a person associates high-price with high quality and low price with poor quality (which I agree). I am one of those people that think this statement is true. But everything comes down to the marketers and their approach to market their product and if they have a brand that has a good history the job is even easier because the first thing it comes to mind when making a purchase is “what brand is it?”
8- Channel members (in my opinion) are ultimately concern about the profits. They expect the best price and quality they can get. Because they have to make a maximum profit spending the least amount of time and resources they can. For example, bars when they get the drinks or beer they expect to get a good price if they buy large quantities from the best brands out there like Corona so they can maximize they profit at least 50% over the retail price.
2- When buying a house people have to use all values. People has to be value conscious because you buying a house nowadays it is pretty much the most important decision you have to make in your life. People expect the best quality and fit for your family. You also have to be price conscious because you must get the best APR there is out there on your mortgage and the best price you can get for the house, and finally prestige sensitive because you definitely want your family living in a nice and safe area.
When buying groceries for a family of five you have to be price conscious and mixed it a little bit with value conscious. What I mean is that you want to feed your family and trying to save money but at the same time getting a quality items.
When buying an airline tickets definitely you have to price conscious, in my opinion all airlines are the same. But it is really hard to find a good deal with all the fees that they have now like paying by the pound on your luggage or paying an extra fee for the gas price changes. Even comparing first class with couch they are all the same you are getting the same service which is to get to your destination. Maybe a little value conscious, because you do not want to travel in an airline that has a bad record on their plane crashing.
When buying a soft drink from a vending machine any value you can apply to this one I think. The level of involvement is so low that there is no need to apply values, because you already know what you want and in some cases you don’t have a choice because the vending machine has a price set up which you cannot change.
3- Marketing and pricing objectives must be considered when making price decision because these two are the ones that are going to define your margin of profit and where the business is going to survive or not at that price establish on the product. They both depend on each other, like a cycle. You cannot have just one objective and considered a price for you product. For...