Psychological pricing

1.0 EXECUTIVE SUMMARY The AzTee Company aims to supply high quality print service at much more competitive rates.. The office is located at Indera Mahkota, Kuantan. The idea is to create a one stop merchandise printing service and advertising center in Kuantan area. The AzTee’s overall business concept is to position the company in customers mind by providing high quality support and merchandise printing service at competitive rates. AzTee Sdn. Bhd. has acquired a sophiscated printing…

1. How does the Bordeaux wine distribution system work? The Bordeaux wine distribution system makes it impossible for consumers to purchase a bottle directly from the chateau. Around 400 merchants from the town of Bordeaux or as known as negociants are responsible for the distribution of the wine; these merchants were selected based on their previous relationship with the chateaux and their success in promoting the brand. Their main goal is to manage a market for the chateaux and ensure a wide…

Introduction: The marketing mix is probably the most common marketing term. It consists of basic tactical components of a marketing plan. Commonly known as the 4P’s, the marketing mix attributes are Price, Place, Product and Promotion. An appropriate combination of the 4P’s needs to be developed to cater the needs of a business in any segment (Spotlight, 2014). The principle objective of this case study is to portray a clear picture of the current valuation of the marketing mix as marketing…

Question 1 Price discrimination is when a company sells to different consumers, the same or similar product or service at a different price, even though the production costs are the same. Examples of price discrimination may include: • The varying price of airline tickets depending on the season and/or day of the week. • Carnival fetes where the cost of tickets are reduced for persons purchasing early or “Ladies free before 11”. • A lower price being charged to customers who purchase a…

Company Overview The proponents concerted to name the company as ECO LIPS Company. The title stands for Economically use of Coconut and other Organic and natural ingredients into a Lip balm that is Irresistable; just Plump and you'll Shine. This title specifically describes the company itself. It talks about the product and its main ingredient. This title distinctly describes the company and its management that aim to produce lip balm from pure natural ingredients. They are proving that it is…

of the consumer surplus, in a monopolistic market. Consumer surplus is the difference between the consumer willingness to pay for a good, compared to the total amount the consumer actually pay. Furthermore, firms have to adjust their 2-part tariff pricing according to the type of consumer demand present in the market. A 2-part tariff is a second-degree price discrimination technique which consist of charging consumers with 2 fees, an entry fee for the right to purchase the product, a usage fee…

Price discrimination Price discrimination or price differentiation is a pricing strategy where transactions are identical or similar to the goods or services at different prices for the same provider in different markets or territories. It is selling the same product with different prices for different consumers. Airlines industry defiantly using the price discrimination strategy, for example, if a person bought a ticket two days before the trip, the airlines company will give this customer a…

Values Based Pricing Utpal Dholakia writes a piece for the Harvard Business Review (HBR) about how to simply calculate the price of merchandise utilizing a Values Based Model. Utpal explains that many of his MBA students have the hardest time grasping the concept of Value Based Pricing, he proceed to break it down into 1 simple sentence. He uses a simple definition: “Value-based pricing is the method of setting a price by which a company calculates and tries to earn the differentiated worth of…

this as a transition question into price, we can get an idea of the frequency of purchase while the next pricing questions will ask for the specifics. Together, this information allows us to spot trends not only in the frequency of purchase but further into how much people are spending at lunch and dinner. This will allow us to develop our prices and cost structure to ensure that we are pricing our menu so that it is affordable to customers while maintaining our image. This question is…

Apple Company has premium brand computers that do not attempt to compete on price. The company reduced prices after initial Apple computers launch. It uses premium pricing strategies and skimming (Armstrong & Kotler, 2005). The pricing strategy rarely fluctuates and the products benefit from the low depreciation. The retail pricing control by Apple is limited with the computers subjected to considerable discounting in the intermediary channel of distribution. The discounting only affects the…