Marketing Homework and Assignment
Running head: MODULE 4 HOMEWORK ASSIGNMENT
MODULE 4 HOMEWORK ASSIGNMENT
King of the South
Allied American University
Author Note
This paper was prepared for MKT 120, MODULE 4 HOMEWORK ASSIGNMENT taught by PROFESSOR K
December 1st,
PART I: Read Pay What It’s Worth.
Would this concept work in an upscale restaurant? Why or why not?
I must admit that upon reading the article, “The Customer Experience: Pay What It’s Worth,” my jaw dropped to the floor. I read it again and still had a hard time processing it. On the one hand, it appears that Terra Bite Lounge’s pricing objectives are definitely not aimed to maximize profits and yet again, as the article clearly states, this business model generates such a buzz such that it stands out from the pack. Lamb, Hair, McDaniel. (2012). For this reason, the model becomes a monopoly in a manner of speaking and as we learned in chapter 16 of the class text, being in such a position warrants no competition therefore making it possible for the business to maximize profits. Do I think this concept would work in an upscale restaurant? I want to say yes and no. The yes would depend on the location of the business. It just happens that I am a resident of Washington State and I can tell you that Kirkland is a rather upscale urban environment, so if the upscale restaurant in question was to choose Kirkland as their location, then this concept would definitely work. Americans are known to be very generous so the model would work in most, if not all upscale urban cities. But if the location is set in the rather less fortunate cities, or towns, then it might as well be a kitchen soup. Location is key for this model to succeed.
Would this model work in a service business?
Absolutely! More so than in a business where products are involved. This is so because if product business intends to make profit, let alone maximize it, they have to come up with a reasonable price for the products that will
MODULE 4 HOMEWORK ASSIGNMENT
King of the South
Allied American University
Author Note
This paper was prepared for MKT 120, MODULE 4 HOMEWORK ASSIGNMENT taught by PROFESSOR K
December 1st,
PART I: Read Pay What It’s Worth.
Would this concept work in an upscale restaurant? Why or why not?
I must admit that upon reading the article, “The Customer Experience: Pay What It’s Worth,” my jaw dropped to the floor. I read it again and still had a hard time processing it. On the one hand, it appears that Terra Bite Lounge’s pricing objectives are definitely not aimed to maximize profits and yet again, as the article clearly states, this business model generates such a buzz such that it stands out from the pack. Lamb, Hair, McDaniel. (2012). For this reason, the model becomes a monopoly in a manner of speaking and as we learned in chapter 16 of the class text, being in such a position warrants no competition therefore making it possible for the business to maximize profits. Do I think this concept would work in an upscale restaurant? I want to say yes and no. The yes would depend on the location of the business. It just happens that I am a resident of Washington State and I can tell you that Kirkland is a rather upscale urban environment, so if the upscale restaurant in question was to choose Kirkland as their location, then this concept would definitely work. Americans are known to be very generous so the model would work in most, if not all upscale urban cities. But if the location is set in the rather less fortunate cities, or towns, then it might as well be a kitchen soup. Location is key for this model to succeed.
Would this model work in a service business?
Absolutely! More so than in a business where products are involved. This is so because if product business intends to make profit, let alone maximize it, they have to come up with a reasonable price for the products that will