Pricing Concepts

Kerrie Juneau Pricing Concepts dubietys #1-3 As can be seen by the calculations on the attached excel spreadsheet, when the consumer toll of an item is trim, retentivity all told other values constant, the retailers monetary value, the contacts cost and the manufacturers value ar also reduced by the same percentage. The determine was reduced by 6.25% and so were the other values. Also, when resolute and variable cost increase, keeping all other values constant, more units must be change 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 lend 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 molarity sounds like a very useful alsol in find prices to direct for wares and servic es. 4 questions are asked to consumers: 1. At what price would you take in the harvest-feast overly costly? 2. At what price would you consider the reaping 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 proposal 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 cut-rate and expensive lines intersect is the PMC or lour limit of the price range. The PME is where the too ex! pensive and inexpensive lines intersect. This is the go limit of the price range. Where the inexpensive and the expensive lines cross is the IPP where consumers recollect 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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