Assignment 3: Pricing Strategy and Channel Distribution 1. Determine and discuss a pricing strategy (Penetration and Skimming) The penetration pricing strategy approach is what we are going use to represent our SONO water filter products in today’s market. Since it serves as many customers as possible representing different valua-tions‚ this pric¬ing model will be our best option. The advantage this approach holds for us is the low volume customers‚ who presumably have a relatively lower valu¬ation
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2.3.4 Customized Pricing Bid Response Model (CPBRM) Majority of the literature in the price-optimization area focuses on pricing of consumer goods or the optimal design of auctions but‚ a large percentage of firms face pricing decisions in a business-to-business setting where a customer requests bids from a small set of competing firms getting a quote for the product or service. When the total annual sales to the firm requesting the bid does not justify a dedicated sales person on behalf of the
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------------------------------------------------- STRATEGIC PRICING PROPOSAL TO COUNTER GENERIC SILDENAFIL We‚ the Viagra Senior Marketing Managers‚ are proposing the post-patent expiration Strategic Pricing Plan to the Pfizer Executive Leadership Team for presentation at the next quarterly meeting. Viagra has been very successful since its approval in March 1998 as a first in class erectile dysfunction (ED) medication. We achieved gross revenue of $1.9 billion last year despite competition
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Mid term assignment Pricing strategies Lecturer: Stuart Francis Student: Bailly Florent Topic: Flat screens‚ flattering prices case study London Campus London Campus Academic year: 2012/2013 Academic year: 2012/2013 Question 1 By 2001‚ pioneers in LCD television market have decided to use a pure skimming pricing strategy‚ which involves charging a relatively high price for a short time (Investopedia‚ 2013). This strategy is usually employed when a new‚ innovative product is
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CHAPTER 10: MARKET POWER AND PRICING STRATEGY Introduction We have examined how firms with market power can generate positive economic profit by influencing the price at which their products or services are sold. This conclusion was based on the assumption that firms must charge the same price to all customers. Now we explore alternative pricing strategies and show that when a firm with market power can “discriminate” among customers‚ additional surplus (beyond that achieved by a single-price
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Capital Asset Pricing Model Capital Asset Pricing Model (CAPM) Capital market theory extends portfolio theory and develops a model for pricing all risky assets. It is an equation that quantifies security risk and defines a risk/return relationship Capital asset pricing model (CAPM) will allow you to determine the required rate of return for any risky asset Implications of the CAPM: CAPM indicates what should be the expected or required rates of return on risky assets This helps to
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The Pricing Strategies of Fast Foods vs. Restaurants Dateesha L. Cavin Webster University 28 April 2011 Abstract This paper explores the difference in pricing strategies of Fast Food vs. Restaurants. Fast food restaurants compared to sit-down restaurants are exceedingly popular because they prove to fit comfortably in our active‚ modern day lives. Today‚ many people eat fast food instead of cooking meals at home. The reason for this is that many of us are constantly busy with our daily responsibilities
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PRADEEP K. CHINTAGUNTA* In studying retailer pricing behavior‚ researchers typically assume that retailers maximize profits across all brands in a focal product category. In this article‚ the author attempts to study empirically the extent to which three factors affect retail prices: (1) the effects of payments from manufacturers to the retailer other than regular promotions‚ as well as the effects of additional costs borne by the retailer for these brands; (2) the retailer’s objectives specific
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Problem: The main problem faced by Eurotunnel’s senior management is that they have not developed a competitive pricing strategy to increase its passenger and freight travel market share. Case Solution: Eurotunnel should use a market-penetration pricing strategy at all times to gain freight customers. It should use a market-penetration pricing strategy during non-peak periods and a premium pricing strategy during peak periods with passenger car customers. Rationale: This strategy works best for Eurotunnel
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responsibility of the Olympic Delivery Authority while the London Organizing Committee of the Olympic Games (LOCOG) was responsible for staging the games. Paul Williamson was hired by the LOCOG as the Head of Ticketing‚ and he soon realized that pricing tickets was a large endeavor in itself‚ with many challenges. The Trade-Offs Chris Townsend‚ Williamson’s boss and the Commercial Director of the LOCOG‚ made sure Williamson never lost sight of their ultimate goal‚ maximizing ticket revenues and
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