in Practice. Capital Ideas. University of Chicago‚ Booth School of Business. Retrieved 2009‚ March 11 from http://www.chicagobooth.edu/capideas/may07/5.aspx. Lucas‚ Mike (1999‚ June). The Pricing Decision: Economists Versus Accountants. Management Accounting‚ 77(66)‚ 34-35. McKinney‚ Robert A. (2008). Pricing to Maximize Total Profits: Gross Profit Margin vs. Net Profit. Retrieved 2009‚ March 11 from http://www.robert-mckinney.com/Documents/Pricing_To_Maximize_Total_Profit.pdf. Shmanske‚ S. (Winter
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Marketing Mix Used by Big Bazaar 1.) Pricing: - The pricing objective is to gain the “Maximum Market Share”. Pricing at Big Bazaar is based on the following techniques: a.) Value Pricing (EDLP- Every Day Low Pricing): - Big Bazaar promises consumers the lowest available price without coupon clipping‚ waiting for promotions‚ or comparison shopping. b.) Promotional Pricing: - Big Bazaar offers financing at low interest rate. The concept of psychological discounting (Rs.49‚ Rs.99‚ Rs.199
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substantially. This is an example of ________ Value added pricing Azure Air‚ an airline company‚ offers attractive prices to customers with tighter budgets. A no-frills airline‚ it charges for all other additional services‚ such as baggage handling and in-flight refreshments. Which of the following best describes Azure Air’s pricing method? Good value pricing Markup pricing is popular because when all firms in the industry use this pricing method‚ prices tend to be similar‚ so price competition is
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Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first‚ then lowers the price over time. It is a temporal version of price discrimination/yield management. It allows the firm to recover its sunk costs quickly before competition steps in and lowers the market price. Price skimming is sometimes referred to as riding down the demand curve. The objective of a price skimming strategy is to capture the consumer surplus. If this is done successfully
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Rich Manufacturing Saint Leo University MBA 540 Sep 8‚ 2011 Why do many firms use cost-plus pricing for supply contracts? Firms use cost-plus pricing in order to cover their operating costs. Cost-plus means they can increase the price to their customers with whom they have contracts when the operating costs rise. Operating costs can rise for many reasons and cost-plus pricing allows firms the flexibility to manage operating costs. This flexibility is often needed when the price
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major influences on pricing decisions Customer Demand: the demands of customers are of paramount importance in all phases of business operations‚ from the design of a product to the setting of its price. Product-design issues and pricing considerations are interrelated‚ so they must be examined simultaneously. For example‚ for a higher quality product; you need higher quality materials which will affect a higher cost and needs more time and this will lead to a higher pricing on a product. Also
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surrounding their pricing strategies: Should they continue to pursue Every Day Low Pricing strategies coupled with frequent promotions or determine a narrow focus on one or the other? If this is preferable‚ then which one will reap the biggest benefits for the department store? Competitors were aggressively promoted their established brand promotions with more fervor than ever‚ and Randall’s was slipping in market dominance. A decision had to be made regarding their pricing policy henceforth
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the demand of air travelling is increasing quickly leads to the appearance of many low cost carriers which focus on popular class. This had made huge changes in the original service and pricing strategy. Easyjet is one of the most successful low-fare airlines in the World‚ which has a noticeable measure of pricing it product. “Price” is one of the “four Ps” in marketing mix but its role is different from the other Ps: “promotion”‚ “product” and “place”. By studying about the comparison between
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determine strategy on pricing‚ operations‚ risk‚ investments and production. The overall role of managerial economics is to increase the efficiency of decision making in businesses to increase profit. ROLE OF MANAGERIAL ECONOMICS Pricing * Managerial economics assists businesses in determining pricing strategies and appropriate pricing levels for their products and services. Some common analysis methods are price discrimination‚ value-based pricing and cost-plus pricing. Elastic vs. Inelastic
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Computer is a pioneer in the manufacture of optical laptops and has done extensive research and developed an optical notebook which is almost five times faster than traditional chip-based computers. In this paper‚ this writer creates a set of pricing and non-pricing strategies designed to enable Acer to maximize its economic profits in different market structures. This writer also discusses how Acer could justify investment in technology‚ research and development‚ and economic efficiency to maximize its
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