Pricing Concepts

Kerrie Juneau Pricing Concepts movements #1-3 As can be seen by the calculations on the attached excel spreadsheet, when the consumer toll of an item is reduced, computer memory all told other values constant, the retailers live, the middlemans cost and the manufacturers value argon also reduced by the same percentage. The wrong was reduced by 6.25% and so were the other values. Also, when fit(p) and variable cost increase, keeping all other values constant, more units essential be sell to break-even or to make a profit. The fixed be were increase by 15%, the variable costs were increased by 5% and the number of units to be sold increased by a add together of 20% reflecting the total channelize in cost. When all of these changes occur together, the manufacturers price is swallow and more units must be sold. Question #4 caravan Westendorps Price Sensitivity verse sounds like a very useful alsol in determine prices to direct for wares and services. 4 questions are asked to consumers: 1. At what price would you sum up the harvest-feast also costly? 2. At what price would you consider the crossing to be so cheesy you would not consider it? 3. At what price would you consider the product to start to get high-priced? 4.

At what price would you consider the product to be a good value or bargain? The answers to these questions are cast on a graph on which the percentage of respondents lies on the vertical axis and the prices on the horizontal axis. The point at which the too sleazy and expensive lines intersect is t he PMC or start out limit of the price rang! e. The PME is where the too expensive and inexpensive lines intersect. This is the swiftness limit of the price range. Where the inexpensive and the expensive lines cross is the IPP where consumers recollect the product or service is cheap or expensive. Where too cheap and too expensive intersect is the OPP or the price at which the price sensitivity for being too cheap is equal to the price sensitivity for...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay