Assignment questions Flashcards
please explain one of the managerial price setting practices for new products mentioned by ingenbeeket
value informed pricing :
setting prices on the basis of information on customer perception of the benefits that the product offers
customer decision is more favorable when product advantage is high and price is low
what are the differences between market skimming and market penetration
price skimming is used by first mover .. marketer set a high price and then lower the price ( cannot last long because of competition)
market penetration is pricing strategy used by businesses to attract customers to new product by offering a low price ( which attract customets)
how does quality perception of national brands and private labels affect willingness to pay
the amount a consumer is willing to pay is closely related to the perception of quality of product
customer think national brands is of a better quality than private label then they will pah more fot national brands
explain how willingness to pay is affected by customer satisfaction
in general higher several quality lead yo more satisfied customers who are willing to pay more ..
an inverse S shaped relationship was found between willingness to pay and customer satisfaction
what is the diffrerence between pure price bundling and mixed price bundling
pure price bundling : selling products only in packs at a fixed price without possibility to sell them individually
mixed price bundling: product can also be separately bought ex ( proximus / internet / telephone)
please refer and explain 2 motives why firms offer product and price bundlings
_ selling a product for a price that can be accepted by customers maximize the profit by getting customers to spent more than they were willing
_initiate customer trials for product they are not interested in , selling the less known product at lower marketing cost
please define the paywhat you want and name your own price pricing strategies
PWYW : is a parcipative pricing strategy wherr the consumer fully decide the price he wants to pay
NYOP: is parcipative price where buyer decide what to pay by sending an offer ( bidding) the seller can approve or refuse the offer
why can the PWYW pose risk to sellers?
are the circumstances in which you consider these risks worth taking?
risk : it may not be profitable price paid by buyers might be much lower than the sellers cost
yes they are worth taking because PWYW help reducing excess inventory and serve as form of advertising WOM
the word free frequently accompanies promotion deals.
why and how does it affect customer behavior
the free pricing strategy increase purchase intention
the buy 1 get 1 free offer does not devalue the product
can you explain and give example on how framing a promotion affects how it is perceived
the way which promotion is framed might affect how customer estimate the value of that promotion
this directly effect the buying decision
it also affect the consumer perception of thr price of promoted product
examlle : percentage off / cents off
what leads individualistic and collectivistic societies to percieve price differently
individualism and collectevism are social patterns that descrive how people interact with each other.
regarding the difference in price perception , we can say that in a collectivistic society people are member of a group , therefore they perceive the quality of products when the price is higher
what superstitions and symbolism should be taken into account when setting prices for eastern and western societies
superstitions are numbers and symbols that may has a meaning for cultures
in western :
number 7 i considered lucky and 13 bad luck
eastern: number 8 is lucky and 4 bad luck
why it is important to integrate R&D and marketing department? how does it affect organizational success
integrate R&D and marketing so that they can exchange knowledge and know how to complement each other.
the integratiom is important for high tech firms because more interaction increase product performance
explain 2 of problems that emerge from integration of R&D and marketing which can hinder new product development
_poor communication due to pressure and work deadlines 》 decrease organization effectiveness
_negative attitudes and distrust between employees of both departments
what is the link between brand anxiety and anti branding? why is this important for companies
it is important for companies to be aware of such behavior as they influence its reputation by spreading negative WOM
_anti branding is a global movement against brands , as it spread dissatisfaction of corporate actions
_brand anxiety is the extent to which consumers worry about changing its treatment and abandoning its customers, as they believe that they have invested resources towards the brand and it should pay them back.
both acquire negative emotions towards the brand
