dont use chatgpt Suppose that Rolex launches a huge advertising campaign with the theme that Rolex is the premiumluxury watch that signifies high wealth, achievement and success. What is the best pricing strategy forRolex?Raise prices to extract more revenue from the new shoppers attracted by the advertising campaignO Cut prices so that so that new shoppers will be surprised how cheap it is to buy a RolexCut prices of the most expensive solid gold Rolex watches while keeping prices of other watches constant.Set all prices so that the profit margin of every product is identical and high.

Advertising is a coordinated and planned advertising campaign aimed at achieving specific marketing…

Answered: Suppose that Rolex launches a huge…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 3SC

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Look at some real estate want ads in your newspaper. Enter the price of a two-bedroom home and a three-bedroom home. If you find some abbreviations you do not understand, ask your teacher.
A clothing retailer priced a shirt at $54. New styles were coming in, so the price was reduced 25%. Two months later, as the season was coming to a close, the price was reduced an additional 30%. Calculate the reduced price, after the second markdown.
Explain how a brand of a commonly purchased consumer packaged goods, such as toilet tissue, could be skim-priced? A service provider has decided to charge his customers P5, 000 for every upholstery cleaning service. The customer thinks that it is a steal , since the service provider is doing a great job and thinks that it could have costed them at least P7, 000 had they agreed to the first service provider that they went to. The total cost to the provider is P2, 000 which include the cleaning materials and labor. Identify the ceiling price and floor price of the service. Should the service provider decide to increase his price to P6, 500, do you think it is still acceptable to the customer? Why? Give an example of a situation where a price that is low with respect to the product’s VTC would not serve as an incentive to buy. What would be the implications of this for the use of a penetration strategy for pricing his product? RESEARCH: What is a pioneer advantage? Describe…
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You are making a special hot chocolate that costs you $0.45 per serving. You sell each serving for $3.50. What is the beverage cost percent?
Fancy Fashions sells jeans for $59 and sweaters for $39, To increase sales of jeans and sweaters, Fancy Fashions promotes this Product Price Bundle: "Buy a pair of jeans and a sweater for $98'. Will this Product Price Bundle will work well to increase the sales of jeans and sweaters? Explain your answer in no more than 2 bullet points.
32- Which one of the following is the reason for inelastic consumers that the retailers should consider in fixing the price? a. Consumers are price sensitive b. There are substitutes c. There are no substitutes d. Purchase urgency is low
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Consider the advertisement for a gutter cleaning service shown below. What is the external reference price in this ad? According to the course material, an advertisement could attempt to frame a price as a single loss, as two losses, as a gain and a loss, or as a gain foregone. Which one of those framings is this advertisement attempting to accomplish? Explain your reasoning. If your internal reference price for gutter cleaning service was $125, how would you perceive this advertised price of the company’s gutter cleaning service? Would you perceive it as a single loss, as two losses, as a gain and a loss, or as a gain foregone? Explain your reasoning.

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