mkt402 week 9 discussion 2 AND responses | Homework Helper

mkt402 week 9 discussion 2 AND responses.
Week 9 Discussion 2

Price Sensitivity Please respond to the following:

Select an industry in which you are interested and determine the type of price sensitivity measurement procedure you would most likely use. Explain your choice.

Provide an example of when an estimate of price sensitivity could benefit the effectiveness of a pricing strategy, as well as an example of when it could cause harm.

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Jackson COLLAPSE

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Price Sensitivity = -25%/50% = -0.50 Thus, we can say that for every percentage point that Tropicana orange juice prices increase, purchases decrease by half a percentage point.Over the years, governments have put laws on the books for the most heinous of fraudulent pricing strategies , but even then some tactics are considered quite unethical, and you may be committing these missteps without even knowing. We touched a bit on the ethics of natural disaster price optimization in a previous post, but in order to fully understand the scopes of pricing ethics let s take a look at a brief overview before diving into five main concepts you should stay far away from in your business. Pricing a product ethically is a major decision for any business. Businesses who use ethical pricing strategies to sell their products and earn a profit are far more respected than those that hurt and defraud competitors or even consumers. To practice ethical pricing, you need to be able to spot the ethical issues that hinder fair pricing. An ethical pricing strategy goes beyond simply following the law. Similarly, not all unethical pricing strategies are fraudulent or illegal. Ethical decisions are difficult sometimes because there isn t a defined line for morally right and wrong decisions.

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Miller
RE: Week 9 Discussion 2
COLLAPSE

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In retail, price sensitivity is always changing. Common health and beauty products, like soap, toothpaste and deodorant, move the fastest. In this case, consumers are relatively less sensitive to price variations. Price sensitivity of a product refers to the level of importance buyers place on price relative to other purchasing criteria. Customers looking for top quality health and beauty products are less price sensitive than consumers who are in search of a bargain.
For example, consumers who look for bargains will compare prices and chose the lowest. Crest or Colgate is in my bathroom depending on which one is on sale!
Price estimate sensitivity could benefit the effectiveness of a pricing strategy when buyers are less price sensitive. The more they value the unique quality of a product, the more they will buy it, no matter the price. A consumer may only choose Crest toothpaste because of the BLUE brightening strips that are in the paste. Marketing plays a major role when differentiating products from the competition.

Price sensitivity can cause harm when there is difficulty with comparing alternative. Let s take the same example with Crest. What is Colgate didn t have a toothpaste that offered GREEN brightening strips?

mkt402 week 9 discussion 2 AND responses