Psychological pricing

industry. Decision making is influenced in an oligopoly by the high rate of competition. Since there are only a few companies in the industry any change will generate an immediate response from the competitors. This means that when a change in pricing, output and advertising occurs from another company our company must also make a change in order to stay competitive. This change will have to occur quickly before one company…

blue paint and have decided to bid on the job. You calculate your incremental costs for this job to be $76,200. This particular contract is standard, similar in all in respects to hundreds of contracts you have bid on over the past few years. Your pricing policy has been to apply a mark-up to incremental costs to arrive at the bid price. Your mark-up has been higher when you had plenty of orders and lower when you had few or no orders to fulfill. You have assembled data relating the mark-up rate…

In considering an expansion of a business into an Asian country, such as China, there would be numerous cross cultural challenges that we could stumble upon. Cultural differences effect the 4P marketing strategies in many ways For example, societal and institutional differences such as: ethnic culture, business culture, and value differences can be challenging when conducting business. In China, the majority of ethnic culture is focused on “relationships.” People can be very antisocial. In…

money for the charity. With penetration pricing, the organization will start off by making a small profit by selling their products for a low price to attract the attention of customers. As time goes on, these prices will increase, generating more profit for the charity. A disadvantage to this method is that at the beginning, the profit will not be a lot and may not cover the expenses needed to make the products. On the other hand, with competitive pricing the Red Cross will follow the price of…

When disaster strikes, many areas, places , and businesses are impacted and consequently many consumers and sellers feel the effects. A market in which I examined was with the Nashville Floods. I chose this natural disaster because it impacted me quite tremendously. During the incident in the area in which I lived was highly impacted and affected by the flood waters and massive amounts of damage. A service that was highly affected during and after this natural disaster was gasoline. I…

Everyday approximately two million people fly in the United States. This huge industry helps drive $1.5 trillion dollars annually and supplies the United States with more than 11 million jobs (Partnering in Safety & Security). Even with this huge amount of revenue for the industry, many airlines struggle with profitability. There are multiple reasons that airlines struggle with profitability. According to the Harvard Business Review, the biggest reasons that airlines struggle with profitability…

The Four P 's of Marketing Your Fleet Key purpose of the article Pricing is one of the four major P’s of the marketing mix. The article suggests that when the other three P’s of promotion, place and product are equal, then pricing becomes a major and influential factor in the success of an organization and the purchase decisions of customers. Identify two pricing concepts that you learned from reading this article. The article highlights the importance of coming up with an appropriate price…

is a good managerial decision to do channel pricing. There are many factors that must be considered when do channel pricing. The first is to determine the price that is desired for the end consumer of the product. This price will help determine the amount of channels that will be used in order to reach the end user. This will also help determine the pricing structure through each distribution channel. The second factor is to determine the channel pricing with the considerations of other…

A brand is a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. The Under Armour brand is a megalodon in a sea of sports apparel. Starting literally in a basement in 1996, the brand has grown from its first sale of $17,000 to annual sales of $638 million in 2013. The brand is incredibly important to the company’s marketing strategy because it defines what…

8. Pricing Strategy In order to get a better profit in Vietnam, the pricing strategy that will be used to market portable home theater glasses is price skimming strategy. Since our product categorized as a new product, we want to set a relatively high price for our product to make the people in Vietnam will have a good perception towards our product’s quality. In addition, when there are some competitors that will enter the Vietnamese market with the same product but having a lower price, the…