Marketing: An Introduction (13th Edition)
13th Edition
ISBN: 9780134149530
Author: Gary Armstrong, Philip Kotler
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 9, Problem 9.15VC
Summary Introduction
Case summary:
There appears a battle between the food chain stores like Restaurants W, MC, BK and other competitors are enormously trying to trap their consumers with low price tempting meals. Though this technique is not new it is more popular than ever before. This method helped other restaurants like Restaurant OG.
Characters in the case:
- Restaurant W, MC, BK
- Restaurant OG
Introduction:
The method that is adopted by the firm to fix the selling price is known as pricing. The pricing generally depends on the average cost and the perceived value of the product.
To determine: Whether the discount menu strategies can be classified as “value pricing”.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Fast-food chains are locked in a fierce battle that has them practically giving food away. McDonald’s, Wendy’s, Burger King, and others are constantly trying to lure customers at the low end of the price spectrum with tempting menu options that can serve as a snack or a meal. Although this technique is nothing new, it’s more popular today than ever. The tactic has even found its way into full-service restaurant chains such as Olive Garden. But are bargain-basement options a sustainable path for restaurant chains? This video takes a look at the various ways discount menus are executed. It also considers the reasons for using discount menu tactics as well as the possible negative outcomes. What are the possible negative outcomes of employing a discount menu strategy?
Toy'r'us
Discuss buyer reactions to pricing strategies employed in the toy retailing industry. How can you explain this reactions?
Give an example of a product that has a price that you find difficult to classify as beinghigh or low. Explain why.
Explain why fine dining establishments must have very high markups over the cost oftheir foods. Is it possible to be a low-priced fine dining establishment?
Should a distributor get a higher margin on a product’s sale than the manufacturer? Howdo you feel about this?
What advantages can a convenience store chain, such as 7-eleven, have over traditionalsari-sari stores? How about disadvantages?
Give an example of a locally made product that you believe will have a good chance ofcompeting in a regional market. Explain why.
Give an instance when a customer care person gave you unsatisfactory service. What wasthe reason and why do you think it happened? How would you address this situation inorder to prevent it from happening again?
Chapter 9 Solutions
Marketing: An Introduction (13th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.Similar questions
- Identify two stores at which you shop, one of which uses everyday lowpricing and another that uses a high/low pricing strategy. Do youbelieve that each store’s chosen strategy is appropriate for the type ofmerchandise it sells and the market of customers to whom it isappealing? Justify your answer.arrow_forwardDollarama stores focus on serving buyers who have relatively modest means. This is an example of aconveniencebvalue pricingcmarket segmentationdtarget marketingarrow_forwardThe cost of doing business and establishing retail pricing are directly related to a business's bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2. Why do you believe that to be the case? 3. Why is it important that a company's pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).arrow_forward
- The cost of doing business and establishing retail pricing are directly related to a business’s bottom line. Therefore, if there is a change in the cost of goods, it will affect the profitability of a business that has set prices for its products. 1. How might profitability and market share be affected if retail pricing fluctuates depending on the cost of raw materials? 2.Why do you believe that to be the case? 3. Why is it important that a company’s pricing objectives fit well with its marketing objectives? Please number your response for each question (1, 2, and 3).arrow_forwardwhy penetration pricing is more advantageous for the entrepreneur?arrow_forwardYour management has requested you to suggest different types of food retailers for new retail investment. Based on any THREE (3) different types of food retailers of your choice, evaluate their characteristics in reference to (1) the size of stores, (2) the variety and assortment of the merchandise, and (3) the pricing method.arrow_forward
- Penetration pricing and price skimming are marketing strategies commonly implemented when companies launch new products or services. Both approaches have worked for businesses, but you have to understand how your price relates to your overall marketing and promotions strategies. Penetration pricing relies on a low upfront price to attract customers, while skimming is the use of high upfront prices to maximize short-term profits from the most eager and interested customers. Compare and contrast market skimming and market penetration pricing with the help of above definitions. Discuss how companies adjust their prices to take into account different types of customers and situations?arrow_forwardThinking about the hotel industry, I'm wondering does the hotels use long run pricing or short run pricing in business?arrow_forwardSuppose you have been hired as the pricing manager for a drugstorechain that typically adds a fixed percentage onto the cost of eachproduct to arrive at the retail price. Evaluate this technique. What wouldyou do differently?arrow_forward
- What is psychological pricing, and how is it used by sellers? Give an example.arrow_forwardLook at some real estate want ads in your newspaper. Enter the price of a two-bedroom home and a three-bedroom home. If you find some abbreviations you do not understand, ask your teacher.arrow_forwardDoes "value" mean the same thing as "low price"? How do these concepts differ? Pick two competing brands from a familiar product category (watches, perfume, consume electronics, restaurants) - one low priced and the other high priced. Which, if either, offers the greatest value? Why might the strategy for setting a product's price need to be changed when a product is part of a product mix? What are the five product mix pricing strategies? Provide an example of each. (4 points) Alicia is a self-employed hair stylist who owns her own salon. She has asked you to consult with her on how to generate more revenue. Using the price adjustment strategies discussed in the chapter, advise Alicia on her options to increase sales. Please be detailed in your response with why you are choosing each.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles Of MarketingMarketingISBN:9780134492513Author:Kotler, Philip, Armstrong, Gary (gary M.)Publisher:Pearson Higher Education,MarketingMarketingISBN:9781259924040Author:Roger A. Kerin, Steven W. HartleyPublisher:McGraw-Hill EducationFoundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
- Marketing: An Introduction (13th Edition)MarketingISBN:9780134149530Author:Gary Armstrong, Philip KotlerPublisher:PEARSONContemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning
Principles Of Marketing
Marketing
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Pearson Higher Education,
Marketing
Marketing
ISBN:9781259924040
Author:Roger A. Kerin, Steven W. Hartley
Publisher:McGraw-Hill Education
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing
ISBN:9780134149530
Author:Gary Armstrong, Philip Kotler
Publisher:PEARSON
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning