03 Jun Question Chapter 13 1. When McDonald’s Corp. reduced the price
Question
Chapter 13
1. When McDonald’s Corp. reduced the price of its Big Mac by 75 percent if customers also purchased french fries and a soft drink, The Wall Street Journal reported that the company was hoping the novel promotion would revive its U. S. sales growth. It didn’t. Within two weeks sales had fallen. Using your knowledge of game theory, what do you think disrupted McDonald’s plans?
3. Dell Computer Corp., the world’s largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design, and advertising decisions made by Hewlett-Packard and Gateway than when these same types of decisions are made by Apple Computer.
8. When he retired as CEO of American Airlines, a position he held for 18 years, Robert Crandall was described in a Newsweek article as “one tough (expletive”. Other nicknames Crandall garnered during his career included Fang, Bob, the Butcher and Wretched Robert. Newsweek noted that Crandall’s “salty language and brass knuckle, in-your-face” style of dealing with employees and rival airlines is now out style in the executive suites of U.S. corporations. In strategic decision-making situations, why might Crandall’s style of management have been advantageous to American Airlines?
11. In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car dealers. An article in The New York Times (August 29, 1999) reported that a New Jersey Mercedes dealer who had his franchise revoked is suing Mercedes, claiming that he was fired for refusing to go along with Mercedes’ no-haggling pricing policy. The New Jersey dealer said he thought the NFP policy was illegal Why might Mercedes’ NFP policy be illegal? Can you offer another reason why the New Jersey dealer might not have wished to follow a no-haggling policy?
Chapter 14
1. STIHL, Inc., manufactures gasoline-powered chain saws for professional, commercial, farm, and consumer markets. To better serve their customers, STIHL offers its chain saws in four different quality lines and associated price ranges: occasional use, midrange, professional, and arborist. Under what circumstances could offering multiple qualities of a product be price discrimination? What form of price discrimination might this represent —-first, second, or third-degree price discrimination? Explain why this practice could increase profit at STIHL.
3. In the mid-1990’s, long before September 11, 2001, airlines began requiring photo identification to check baggage and board flights, claiming their fervent commitment to secure and safe air travel. Do you think the airlines implemented this policy because they could for see the coming terrorist threat to aviation? What might be a more plausible explanation for the airlines’ early commitment to photo identification?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.