We all love low prices, or at least lower prices. However, as a company a low...
We all love low prices, or at least lower prices. However, as a company a low price strategy may not be the best decision to follow. There are many dynamics that come with low price. Why would a company adopt a pricing strategy that is not low price?
Homework Answers
Setting prices for the products or services seem to be the challenging task for any managers. Generally pricing policy of a company refers how a company would set the prices for its products & services based on costs, value, demand & competition.
Companies generally don’t prefer low prices for their products for the following reasons:
- To increase their short term & long term profits.
- To increase their cash flow.
Managers must also consider the current market conditions when developing their pricing strategies to ensure that the price policy they select would fit the prevailing market conditions.
As we all know the basic formula, cost + profit = selling price, companies mostly follow only this approach in fixing the price for their products. No organizations would fix a high price for their product without any reason & at the same time they also don’t fix a very less price for the product.
A company adopts to fix a higher price for the above mentioned reasons & also to have a gain in their production. When producing a product, a company would incur various costs like raw materials, advertisement, it must pay its suppliers, marketing people, its employees the salaries & these are the costs which are included in the price of the product to earn reasonable amount of profits.
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We all love low prices, or at least lower prices. However, as a
company a low...
BBlank answer choices: 1. (High, Low ) 2. (High, Low) 3. (High, Low) 4. (High, Low) 5. (Is, Is not) 6. Using a payoff ma...
BBlank answer choices:
1. (High, Low )
2. (High, Low)
3. (High, Low)
4. (High, Low)
5. (Is, Is not)
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low Flashfone Pricing High Low 11, 113,...
Drop Down Menu Options: 1) high/low 2) high/low 3) high/low 4) high/low 5) is/is not 6....
Drop Down Menu Options:
1) high/low
2) high/low
3) high/low
4) high/low
5) is/is not
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High 10, 10 16,5 High Low Low 5,16 7,7 Flashfone Pricing For example,...
Two companies, Chevron and Shell, are the only two gas stations operating in a small town. Each company must simultaneously display their prices, choosing between a high price and low price. The profi...
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their prices, choosing between a high price and low price. The
profits each firm can potentially earn are displayed in the payoff
matrix displayed below:
a. What is Chevron’s most likely decision (what is their
dominant strategy)?
b. What is Shell’s most likely decision (what is their dominant
strategy)?
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BBlank answer choices:
1. (High, Low )
2. (High, Low)
3. (High, Low)
4. (High, Low)
5. (Is, Is not)
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High Low Flashfone Pricing High Low 11, 113,...
Drop Down Menu Options:
1) high/low
2) high/low
3) high/low
4) high/low
5) is/is not
6. Using a payoff matrix to determine the equilibrium outcome Suppose there are only two firms that sell smartphones: Flashfone and Pictech. The following payoff matrix shows the profit (in millions of dollars) each company will earn, depending on whether it sets a high or low price for its phones. Pictech Pricing High 10, 10 16,5 High Low Low 5,16 7,7 Flashfone Pricing For example,...
Two companies, Chevron and Shell, are the only two gas stations
operating in a small town. Each company must simultaneously display
their prices, choosing between a high price and low price. The
profits each firm can potentially earn are displayed in the payoff
matrix displayed below:
a. What is Chevron’s most likely decision (what is their
dominant strategy)?
b. What is Shell’s most likely decision (what is their dominant
strategy)?
c. What is the most expected outcome (what is the...
Cancel and send me the question back
The bargaining power of suppliers works well for appliers when one of the following conditions exists The product that suppliers sell has many substitutes and is not important to the buying company 3. The product that suppliers sell has few substitutes and is not important to the buying company C. The product that suppliers sell has few substitutes and is important to the buying company D. The product that suppliers sell has many...
Gadgets for Sale ... or Not How come the prices of some gadgets, like the iPod, are the same no matter where you shop? No, the answer isn't that Apple illegally manages prices. In reality, Apple uses an accepted retail strategy called minimum advertised price to discourage resellers from discounting. The minimum advertised price (MAP) is the absolute lowest price of a product that resellers can advertise. Marketing subsidies offered by a manufacturer to its resellers usually keep the price...
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