Pricing Concepts

Kerrie Juneau Pricing Concepts interrogatives #1-3 As can be seen by the calculations on the attached excel spreadsheet, when the consumer toll of an item is reduced, retentiveness all told other values constant, the retailers make up, the jobbers cost and the manufacturers value be also reduced by the same percentage. The toll was reduced by 6.25% and so were the other values. Also, when primed(p) and variable cost increase, keeping all other values constant, more units mustiness be sell to break-even or to make a profit. The fixed be were increase by 15%, the variable costs were increased by 5% and the number of units to be sold increased by a get of 20% reflecting the total channelize in cost. When all of these changes occur together, the manufacturers price is swallow and more units must be sold. Question #4 caravan Westendorps Price Sensitivity thousand sounds like a very useful alsol in ascertain prices to direct for wares and s ervices. 4 questions are asked to consumers: 1. At what price would you gestate the harvest-feast too costly? 2. At what price would you consider the return to be so cheesy you would not consider it? 3. At what price would you consider the product to start to get valuable? 4.

At what price would you consider the product to be a good value or bargain? The answers to these questions are political platform on a graph on which the percentage of respondents lies on the vertical axis and the prices on the horizontal axis. The point at which the too gaudy and expensive lines interse ct is the PMC or cut back limit of the pric! e range. The PME is where the too expensive and inexpensive lines intersect. This is the speed limit of the price range. Where the inexpensive and the expensive lines cross is the IPP where consumers recoil the product or service is cheap or expensive. Where too cheap and too expensive intersect is the OPP or the price at which the price sensitivity for being too cheap is equal to the price sensitivity for...If you want to get a full essay, order it on our website: BestEssayCheap.com

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