Innovation lecture 3

Question 1

How to set the price

Answer 1

Set pricing objectives 
Estimand demand 
Determine cost 
Evaluate pricing environment 
Set pricing strategy 
Set pricing tactics

Question 2

Developing prices

Answer 2

Profit
Competitive effect
Customer satisfaction

Question 3

Different methods of forecasting

Answer 3

Intuitive foracasting
Causal forecasting
Time series model
Qualitative forecasting

Question 4

Intuitive foracasting

Answer 4

gut feeling based on experience

Question 5

Causal forecasting

Answer 5

changes in external or internal situation have a relation with changes in sales.

Question 6

Time series model

Answer 6

assumes a certain trend in consumption and sales

Question 7

Qualitative forecasting

Answer 7

judgment of several people, interview potential target group (market research)

Question 8

Variable costs

Answer 8

Cost that can change. It depends on how much is produced or is sold

Question 9

Fixed costs

Answer 9

Costs that remain unchanged with varying activity levels

Question 10

Direct costs

Answer 10

Direct costs are the expenses a business incurs directly to make a product

Question 11

Why do we use contribution margin and not gross profit?

Answer 11

Fixed costs stay similar over time
Variable costs stay similar per item
It is a better tool for planning/ predicting