29 Jun What are the differences between cost-based
Question
1.What are the differences between cost-based and value-based pricing?
2.Pricing is based on customer perceptions of value and costs in addition to other internal
factors. Discuss these other internal factors and how they might affect the pricing of a new Sony
MP# player.
3.Explain why elasticity of demand is such an important concept to marketers who sell a
"commodity product."
4.Why is product bundling pricing effective?
5.You are an owner of a small independent chain of coffee houses competing head-to-head with
Starbucks. The retail price your customers pay for coffee is exactly the same as at Starbucks.
The wholesale price you pay for roasted coffee beans has increased by 25%. You understand
that you cannot absorb this increase and that it must be passed on to your customers. However,
you are concerned about the consequences of an open price increase. Discuss three alternative
price-increase strategies that address your concerns.
6.Identify and describe the categories of a Promotional mix (Marketing communications mix).
7.Define Integrated Marketing Communications. Many companies are adopting the integrated
marketing communication concept. Discuss two major problems this marketing communications
philosophy is designed to remedy.
8.Why might the Northwestern Mutual Life Insurance Company choose a rational appeal for its
life insurance products targeted to 28– to 38-year-old males? Why might it choose a humor
appeal?
9.Explain how a brand manager for Colgate toothpaste might use each of the common methods
for setting total advertising budgets.
10.Explain the Federal Trade Commission’s "three-day cooling-off" rule. When does this apply?
Why was it developed? Please use own words because they check for plagiarism and flag things if it is copied and
pasted
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