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Title Name Amity Solve Assignment MBA Insurance for Product Development and Pricing
University AMITY
Service Type Assignment
Course MBA
Semister Semester-IV-Insurence Cource: MBA
Short Name or Subject Code Product Development & Pricing
Commerce line item Type Semester-IV-Insurence Cource: MBA
Product Assignment of MBA Semester-IV-Insurence (AMITY)

Solved Assignment


  Questions :-

                                                                                              Product Development & Pricing

 Assignment  A

  1. Explain how the leading brands are utizing market opportunities to achieve growth
  2. What is meant by product line? What are the major product line decision.
  3. Discuss how marketing strategies change during the product´s life cycle. 
  4. Write short notes on five popular products which have reached the decline stage.
  5. What are the views on the future of the Desktop computes.
  6. Explain the stages in new product development process?
  7. Discuss the role and importance of pricing?
  8. What are the special pricing strategy for new product pricing?

 

 

 

 

 

 

Assignment B

Case Detail:  

There is no case study you need to answer the questions

  1. Explain the factors influencing pricing decisions
  2. What is meant by price discrimination? Discuss the different types of price discrimination.
  3. New product development is a growth strategy. Discuss?

 

 

 

 

 

Assignment C

Question No.  1          Marks - 10

________________________________________

Specially products include:  

Options          

  1. Luxury cars
  2. Expensive watches
  3. Diamond jewellery
  4. All of the above

 

 

Question No.  2          Marks - 10

________________________________________

Supplies include:      

Options          

  1. Housekeeping and AMC
  2. Material and parts
  3. Office equipment
  4. All of above

           

 

 

Question No.  3          Marks - 10

________________________________________

At the product augmentation level this takes place           

Options          

  1. Differentiation
  2. Brand Positioning
  3. Competition
  4. All of the above

           

 

 

Question No.  4          Marks - 10

________________________________________

For Shopping Products consumers compare:        

Options                      

  1. Price
  2. Quality
  3. Style/Design
  4. All of the above

           

 

 

Question No.  5          Marks - 10

________________________________________

Packaging involves activities like:   

Options          

  1. Primary Container
  2. Secondary packing
  3. Shiping package
  4. All of the above

           

 

 

Question No.  6          Marks - 10

________________________________________

Product mix consists of        

Options          

  1. An assortment of products
  2. Only one product line
  3. Only selected producs
  4. An important product

           

 

 

Question No.  7          Marks - 10

________________________________________

Brand positioning can be done based on:  

Options          

  1. Attributes
  2. Benefits
  3. Beliefs and values
  4. All of the above

           

 

 

Question No.  8          Marks - 10

________________________________________

Example of brand extension:          

Options                      

  1. Barbie Doll
  2. Lifebuoy
  3. Amul Milk
  4. All of the above

           

 

 

Question No.  9          Marks - 10

________________________________________

Sales of a product declines due to   

Options                      

  1. Technological advance
  2. Consumer shifts in tastes
  3. increased competition
  4. All of the above

           

 

 

Question No.  10        Marks - 10

________________________________________

Product relaunch can take several forms like:      

Options          

  1. Quality improvements
  2. Feature improements
  3. Style/Design improvements
  4. All of the above

           

 

 

Question No.  11        Marks - 10

________________________________________

At the maturity stage in PLC:         

Options          

  1. Rate of growth slows down
  2. Profits are negative
  3. Cost of marketing declines
  4. None of the above

           

 

 

Question No.  12        Marks - 10

________________________________________

Some firms withdraw producs in the         

Options                      

  1. Introduction stage
  2. Declining stage
  3. Growth stage
  4. All of above

           

 

 

Question No.  13        Marks - 10

________________________________________

New products launched by a company could be:  

Options                      

  1. New for Mankind
  2. New for country
  3. new for the company
  4. All of the above

           

 

 

Question No.  14        Marks - 10

________________________________________

Idea generation techniques include:           

Options                      

  1. Attribute listing
  2. Brainstorming
  3. Synectics
  4. All of the above

           

 

 

Question No.  15        Marks - 10

________________________________________

Business analysis includes:  

Options                      

  1. Marginal costing method
  2. Feasibility and profiability
  3. Budget preparation
  4. None of the above

           

 

 

Question No.  16        Marks - 10

________________________________________

Rate of adoption is influenced by:  

Options                      

  1. Relative advantage
  2. Brand name and image
  3. price of product
  4. None of the above

           

 

 

Question No.  17        Marks - 10

________________________________________

Cost-based pricing method uses:    

Options                      

  1. Mark-up pricing
  2. Marginal cost pricing
  3. Absorption cost pricing
  4. All of the above

           

 

 

Question No.  18        Marks - 10

________________________________________

Competition-based pricing involves:          

Options          

  1. Premum pricing
  2. Discount pricing
  3. Parity pricing
  4. All of the above

           

 

 

Question No.  19        Marks - 10

________________________________________

Value pricing is based on:   

Options          

  1. Value perceived by customers
  2. Total cost of product
  3. Highest price chargeable
  4. None of the above

           

 

 

Question No.  20        Marks - 10

________________________________________

Product line pricing involves:          

Options                      

  1. High prices for one product line
  2. Different prices in product line, but as a whole optimal
  3. Low prices for all product lines
  4. None of above.

 

 

 

Question No.  21        Marks - 10

________________________________________

Convenience products are low priced and bought frequently     

Options          

  1. True
  2. False

           

 

 

Question No.  22        Marks - 10

Product line is a group of unrelated product        

Options          

  1. True
  2. False

 

 

 

Question No.  23        Marks - 10

In social marketing ideas are marketed for improvement of social well-being   

Options          

  1. True
  2. False

 

 

 

Question No.  24        Marks - 10

________________________________________

Capital items include raw materials

Options          

  1. True
  2. False

           

 

 

Question No.  25        Marks - 10

________________________________________

Brands are considered as major enduring assets of a company  

Options          

  1. True
  2. False     

 

 

 

Question No.  26        Marks - 10

________________________________________

Product line consistency refers to how closely related the various product lines are.    

Options                      

  1. True
  2. False

           

 

 

Question No.  27        Marks - 10

________________________________________

Labelling and packageing are one and the same   

Options                      

  1. True
  2. False

           

 

 

Question No.  28        Marks - 10

________________________________________

Product differentiation does not allow a company to fight on the non-price plank.      

Options                      

  1. True
  2. False

           

 

 

Question No.  29        Marks - 10

________________________________________

A declining/weak product is very costly to the firm          

Options                      

  1. True
  2. False

           

 

 

Question No.  30        Marks - 10

________________________________________

The maturity stage does not last long         

Options                      

  1. True
  2. False

           

 

 

Question No.  31        Marks - 10

________________________________________

Skiming Strategy involves high price         

Options                      

  1. True
  2. False

           

 

 

Question No.  32        Marks - 10

________________________________________

Profits decline during the growth stage.    

Options                      

  1. True
  2. False

 

           

 

Question No.  33        Marks - 10

________________________________________

Sales wave research can be used to test market consumer goods.           

Options          

  1. True
  2. False

           

 

 

Question No.  34        Marks - 10

________________________________________

Test marketing will be done after commercialisation       

Options          

  1. True
  2. False

           

 

 

Question No.  35        Marks - 10

________________________________________

Business analysis looks at feasibility as well as profitability.        

Options                      

  1. True
  2. False

           

 

 

Question No.  36        Marks - 10

________________________________________

Idea generation uses brainstorming

Options                      

  1. True
  2. False

           

 

 

Question No.  37        Marks - 10

________________________________________

Pricing is a highly risky decision area.       

Options                      

  1. True
  2. False

 

           

 

Question No.  38        Marks - 10

________________________________________

Break-even point is not relavant for price fixation.          

Options          

  1. True
  2. False        

 

 

Question No.  39        Marks - 10

________________________________________

Governmental policies do not affect pricing decisions.     

Options                      

  1. True
  2. False

           

 

 

Question No.  40        Marks - 10

________________________________________

Discount pricing is pricing below the competitor´s price  

Options                      

  1. True
  2. False       
  Answers :-

                                                                                              Product Development & Pricing

 Assignment  A

  1. Explain how the leading brands are utizing market opportunities to achieve growth

Ans:

Far too many companies fail to achieve their growth targets in revenue and profitability. However, the probability of achieving profitable growth is heightened whenever an organization has a clear growth strategy and strong execution infrastructure. One without the other impairs the probability of success. This author describes why and prescribes strategies 

Many organizations fail to achieve their desired growth targets in revenue and profitability.

Most businesses fall short of achieving their growth objectives for revenue and profitability. In fact, studies report success rates as low as 20%. Why is growth so elusive?

Based on our research and experience, there are two major reasons:

  • Inadequate consideration of opportunities within the core business, adjacent to the core business or within new customer sub-segments.
  • An organizational infrastructure that cannot support successful execution.

However, managers can do certain things to improve the chances for success. This article will describe one such thing managers can do, namely build a systematic framework composed of three strategies for growth and three key elements for successful execution. The article will also explain how the three strategies and three key elements increase the probability for success.

 

 

  1. What is meant by product line? What are the major product line decisions

Ans:

A product line is a group of products that are closely related manufactured by a single company. This close relationship comes from several product attributes: they function in a similar manner, are sold to the same target customers, are marketed in the same way or fall within the same price ranges. Each product line requires separate product line decisions.

To give an example for a product line, a cosmetic company’s makeup product line might contain concealer, powder, blush, eyeliner, mascara and lipstick products. All of them are closely related and therefore part of one product line. The same company might also offer other product lines. For instance, one product line could be geared toward teenagers and another one toward woman older than 50 (e.g. an anti-age product line). Each of these product lines requires specific product line decisions.

A motor vehicle manufacturer may have several product lines. These could include heavy-duty vehicles, consumer cars and motorcycles. Also here, separate product line decisions need to be made.

Product Line Decisions no. 1: Product Line Length

The primary one of the product line decisions is the product line length. This means nothing else than the number of items in a product line. Certainly, the product line is too short if the company could increase profits by adding items to it. However, it is too long if profits could be augmented by dropping items. In order to find that out, each item in the product line should be assessed on a regular basis in terms of sales and profits. Then, the company can understand how each item contributes to the product line’s overall performance and make the right product line decisions.

The product line length can be influenced by company objectives and resources. For instance, a company might want to maintain longer product lines to protect against economic swings.

Product Line Decisions no. 2: Expanding the product line

Expanding the product line is the second one of the product line decisions. A company can expand its product line in two ways: Line Filling and Line Stretching. Both of these product line decisions involve adding items to the line. Line filling means adding more items within the present range of the line. Reasons for doing so include the goals to reach extra profits, to satisfy dealers, to use excess capacity etc. However, the company must not exaggerate: new items should be noticeably different from existing ones. Otherwise, customer confusion might be the consequence.

Line stretching means lengthening the product line beyond the current range. We can differentiate between downward, upward, and 2-way stretching. A company located at the upper end of the market may choose to stretch the product line downward. Thus, it may attract low-end customers and reach new targets. Upward stretching is appropriate if the company wants to add prestige to the current product line. Also, better growth rates and higher margins may be the attractive factor for upward stretching. To give an example: leading Japanese car manufacturers all introduced an upmarket brand: Honda with Acura, Toyota with Lexus, Nissan with Infiniti.

For a company in the middle range of the market, stretching the product line in both directions may be best. Thereby, the company can serve both the upper and lower ends of the market.

 

 

  1. Discuss how marketing strategies change during the product´s life cycle. Solve by www.solvezone.in contact for more details at - 8882309876

Ans:

Product passes through four stages of its life cycle. Every stage poses different opportunities and challenges to the marketer. Each of stages demands the unique or distinguished set of marketing strategies. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and accordingly, he should design appropriate marketing strategies. Here, strategy basically involves four elements – product, price, promotion, and distribution.

By appropriate combination of these four elements, the strategy can be formulated for each stage of the PLC. Every stage gives varying importance to these elements of marketing mix. Let us analyze basic strategies used in each of the stages of the PLC

Following are the possible strategies during the first stage:

  1. Rapid Skimming Strategy:

This strategy consists of introducing a new product at high price and high promotional expenses. The purpose of high price is to recover profit per unit as much as possible. The high promotional expenses are aimed at convincing the market the product merits even at a high price. High promotion accelerates the rate of market penetration, in all; the strategy is preferred to skim the cream (high profits) from market.

  1. Slow Skimming Strategy:

This strategy involves launching a product at a high price and low promotion. The purpose of high price is to recover as much as gross profit as possible. And, low promotion keeps marketing expenses low. This combination enables to skim the maximum profit from the market.

  1. Rapid Penetration:

The strategy consists of launching the product at a low price and high promotion. The purpose is the faster market penetration to get larger market share. Marketer tries to expand market by increasing the number of buyers.

  1. Slow Penetration:

The strategy consists of introducing a product with low price and low-level promotion. Low price will encourage product acceptance, and low promotion can help realization of more profits, even at a low price.

 

 

  1. Write short notes on five popular products which have reached the decline stage.

Ans:

3D Televisions: 3D may have been around for a few decades, but only after considerable investment from broadcasters and technology companies are 3D TVs available for the home, providing a good example of a product that is in the Introduction Stage.

Blue Ray Players: With advanced technology delivering the very best viewing experience, Blue Ray equipment is currently enjoying the steady increase in sales that’s typical of the Growth Stage.

DVD Players: Introduced a number of years ago, manufacturers that make DVDs, and the equipment needed to play them, have established a strong market share. However, they still have to deal with the challenges from other technologies that are characteristic of the Maturity Stage.

Video Recorders: While it is still possible to purchase VCRs this is a product that is definitely in the Decline Stage, as it’s become easier and cheaper for consumers to switch to the other, more modern formats.

Another example within the consumer electronics sector also shows the emergence and growth of new technologies, and what could be the beginning of the end for those that have been around for some time.

Holographic Projection: Only recently introduced into the market, holographic projection technology allows consumers to turn any flat surface into a touchscreen interface. With a huge investment in research and development, and high prices that will only appeal to early adopters, this is another good example of the first stage of the cycle.

 

 

  1. What are the views on the future of the Desktop computes

Ans:

This has been my concern for some time. Most industry pundits that I talk to all pretty much agree that the desktop PC is being pushed aside for mobile computing devices.

Yet still, I can´t see every single white-collar employee using a portable laptop everywhere, with a tablet device. That just won´t happen. You just can´t (at this moment, at least), leverage these devices to produce more work than a desktop computer.

However, the biggest problem is that I can´t seem to visualize what it may be. Will desktops become less powerful hubs, borrowing resources from the cloud (as thin clients), or will they be more powerful, more specialized, larger etc. devices?

This was originally posted at a CloudCamp QA session: "If ´cloud computing´ is indeed the wave of the future, what will happen to the desktop PC? Is my computer getting dumber?"

Brainstorming of ideas is very much encouraged.

 

 

 

  1. Explain the stages in new product development process?

Ans:

The New Product Development process is often referred to as The Stage-Gate innovation process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed and why they fail.

When teams collaborate in developing new innovations, having the following eight ingredients mixed into your team’s new product developmental repertoire will ensure that it’s overall marketability will happen relatively quick, and accurately – making everyone productive across the board.

Step 1: Generating

Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI, and widespread distribution costs into account.

Lean, mean and scalable are the key points to keep in mind. During the NPD process, keep the system nimble and use flexible discretion over which activities are executed. You may want to develop multiple versions of your road map scaled to suit different types and risk levels of projects.

Step 2: Screening The Idea

Wichita, possessing more aviation industry than most other states, is seeing many new innovations stop with Step 2 – screening.  Do you go/no go?  Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on.

Because product development costs are being cut in areas like Wichita, “prescreening product ideas,” means taking your Top 3 competitors’ new innovations into account, how much market share they’re chomping up, what benefits end consumers could expect etc.  An interesting industry fact: Aviation industrialists will often compare growth with metals markets; therefore, when Boeing is idle, never assume that all airplanes are grounded, per se. 

Step 3: Testing The Concept 

As Gaurav Akrani has said, “Concept testing is done after idea screening.” And it is important to note, it is different from test marketing.

Aside from patent research, design due diligence, and other legalities involved with new product development; knowing where the marketing messages will work best is often the biggest part of testing the concept.  Does the consumer understand, need, or want the product or service?

 Step 4: Business Analytics

During the New Product Development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback. It is important for an organization to be in agreement for these criteria and metrics.

Even if an idea doesn’t turn into product, keep it in the hopper because it can prove to be a valuable asset for future products and a basis for learning and growth.

Step 5: Beta / Marketability Tests

Arranging private tests groups, launching beta versions, and then forming test panels after the product or products have been tested will provide you with valuable information allowing last minute improvements and tweaks. Not to mention helping to generate a small amount of buzz. WordPress is becoming synonymous with beta testing, and it’s effective; Thousands of programmers contribute code, millions test it, and finally even more download the completed end-product.

Step 6: Technicalities + Product Development

Provided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth step 7 is imminent. According to Akrani, in this step, “The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product”.

As an example; In manufacturing, the process before sending technical specs to machinery involves printing MSDS sheets, a requirement for retaining an ISO 9001 certification (the organizational structure, procedures, processes and resources needed to implement quality management.)

In internet jargon, honing the technicalities after beta testing involves final database preparations, estimation of server resources, and planning automated logistics. Be sure to have your technicalities in line when moving forward.

Step 7: Commercialize

At this stage, your new product developments have gone mainstream, consumers are purchasing your good or service, and technical support is consistently monitoring progress.  Keeping your distribution pipelines loaded with products is an integral part of this process too, as one prefers not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during this stage will keep your product’s name firmly supplanted into the minds of those in the contemplation stages of purchase.

Step 8: Post Launch Review and Perfect Pricing

Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have ‘gotten in’.  In this final stage, you’ll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren’t overshadowing new product profits.  You continuously differentiate consumer needs as your products age, forecast profits and improve delivery process whether physical, or digital, products are being perpetuated.

 

 

 

  1. Discuss the role and importance of pricing?

Ans:

  1. Price is the Pivot of an Economy:

In the economic system, price is the mechanism for allocating resources and reflecting the degrees of both risk and competition. In an economy particularly free market economy and to a less extent in controlled economy, the resources can be allocated and reallocated by the process of price reduction and price increase.

Price policy is a weapon to realize the goals of planned economy where resources can be allocated as per planned priorities.

Price is the prime mover of the wheels of the economy namely, production, consumption, distribution and exchange. As price is a sacrifice of purchasing power, it affects the living standards of the society; it regulates business profits and, hence, allocates the resources for the optimum output and distribution. Thus, it acts as powerful agent of sustained economic development.

  1. Price regulates demand:

The power of price to produce results in the market place is not equalled by any other component in the product-mix.

It is the greatest and the strongest ‘P’ of the four ‘Ps’ of the mix. Marketing manager can regulate the product demand through this powerful instrument. Price increases or decreases the demand for the products. To increase the demand, reduce the price and increase the price to reduce the demand.

Price has a special role to play in developing countries where the marginal value of money is high than those of advanced nations. De-marketing strategy can be easily implemented to meet the rising demand for goods and services.

As an instrument, it is a big gun and it should be triggered exclusively by those who are familiar with its possibilities and the dangers involved.

It is so because; the damage done by improper pricing may completely sap the effectiveness of the well-conceived marketing programme. It may defame even a good product and fame well a bad product too.

  1. Price is competitive weapon:

Price as a competitive weapon is of paramount importance. Any company whether it is selling high or medium or low priced merchandise will have to decide as to whether its prices will be above or equal to or below its competitors. This is a basic policy issue that affects the entire marketing planning process. Secondly, price does not stand alone as a device for achieving a competitive advantage.

In fact, indirect and non-price competitive techniques often are more desirable because, they are more difficult for the competitors to copy. Better results are the outcome of a fine blend of price and non-price strategies. Thirdly, there is close relationship between the product life-cycle and such pricing for competition.

There are notable differences in the kinds of pricing strategies that should be used in different stages. Since the product life span is directly related to the product’s competitiveness, pricing at any point in the life-cycle should reflect prevailing competitive conditions.

  1. Price is the determinant of profitability:

Price of a product or products determines the profitability of a firm, in the final analysis by influencing the sales revenue. In the firm, price is the basis for generating profits. Price reflects corporate objectives and policies and it is an important ingredient of marketing mix. Price is often used to off-set the weaknesses in other elements of the marketing-mix.

 

 

  1. What are the special pricing strategy for new product pricing?

Ans:

Small companies can use a number of pricing strategies for new products. Some business owners use a cost-plus method for pricing. They calculate production and advertising costs then add a percentage to their unit costs. Other companies have a specific return on investment in mind for new products. Whatever the case, business owners must study the market and competition before setting a price for new products.

Demand

A company will usually study demand for industry products before setting a new product price. Demand may be relatively elastic in the industry, meaning consumers are sensitive to price changes. Therefore, the quantity that consumers demand will decrease as prices increase. Contrarily, demand may be highly inelastic. Inelastic demand means consumers are not overly concerned with price. Companies that produce highly technical devices often experience inelastic demand. For example, a small cell phone company may introduce a new type of cell phone. Certain consumers may desire the phone so much that they are not concerned how much it costs.

Types

A company will often use a price skimming or penetration pricing strategy for new products. Companies that use a price skimming strategy will typically set prices relatively high versus competitive products. Contrariwise, companies that use a penetration pricing strategy will usually price their new products lower than competitive products. A company may also price its product commensurate with competitive products.

Benefits

A business owner will use a price skimming strategy to quickly recoup product and advertising costs. She may not have access to much business capital. Therefore, she needs the money to produce more products and increase advertising expenditures. The benefit of a penetration pricing strategy is that it can quickly increase market share, according to Net MBA website. The business owner will deliberately price her products low to achieve a high business volume. Subsequently, she will likely focus on producing high quality products to keep those customers. Meeting competitive prices is just a safe alternative. Consumers are already paying a certain price for existing products.

Function

Most initial pricing strategies are temporary. A company cannot continue to keep prices too low or high. The company will risk losing potential customers with high prices and sacrifice profits with low prices. However, a business owner can continue to offer occasional price reductions for new products. For example, some companies offer rebates on new products, where customers will receive money at a future date.

Considerations

The best way to know how to price new products is by asking consumers. Companies often use focus groups and marketing research to determine prices for new products. For example,

managers of a small restaurant may interview 10 customers on price in a focus group. Their objective may be to determine how much customers would pay for a new breakfast item.

 

 

Assignment B

Case Detail:  

There is no case study you need to answer the questions

  1. Explain the factors influencing pricing decisions

Ans:

Factors that impact pricing decisions include internal factors like the marketing objectives for the organization, and external factors such as the nature of the market, competition and demand. Marketing will determine a strategy for the product, which greatly impacts the proposed pricing for a product.

Prior to setting pricing, companies will also evaluate the cost of producing the product. Pricing will be strategically set in order for the organization to be profitable, while still ensuring that they are able to compete in the marketplace.

Environmental factors, such as the current state of the economy and government regulations, are also key components of establishing a pricing strategy for goods or services.

 

 

  1. What is meant by price discrimination? Discuss the different types of price discrimination.

Ans:

Price discrimination is one of the competitive practices used by larger, established businesses in an attempt to profit from differences in supply and demand from consumers. Price discrimination is a pricing strategy that occurs when a business or seller charges a different price to various customers for the same product or service. A company can enhance its profits by charging each customer the maximum amount he is willing to pay, eliminating consumer surplus, but it is often a challenge to determine what that exact price is for every buyer. For price discrimination to succeed, businesses must understand their customer base and its needs, and there must be familiarity with the various types of price discrimination used in economics. The most common types of price discrimination are first, second and third degree discrimination.

First Degree Price Discrimination

In an ideal business world, companies would be able to eliminate all consumer surplus through first degree price discrimination. This type of pricing strategy takes place when businesses can accurately determine what each customer is willing to pay for a specific product or service and selling that good or service for that exact price.

In some industries, such as used car or truck sales, an expectation to negotiate final purchase price is part of the buying process. The company selling the used car can gather information through data mining relating to each buyer´s past purchase habits, income, budget and maximum available output to determine what to charge for each car sold. This pricing strategy is time-consuming and difficult to perfect for most businesses, but it allows the seller to capture the highest amount of available profit for each sale.

Second Degree Price Discrimination

In second degree price discrimination, the ability to gather information on every potential buyer is not present. Instead, companies price products or services differently based on the preferences of various groups of consumers.

Most often, businesses apply second-degree price discrimination through quantity discounts; customers who buy in bulk receive special offers that are not granted to those who buy a single product. This type of pricing strategy is used most often in warehouse retailers, such as Sam´s Club or Costco, but it can also be seen in companies that offer loyalty or rewards cards to frequent customers.

Second degree price discrimination does not altogether eliminate consumer surplus, but it does allow a company to increase its profit margin on a subset of its consumer base.

Third Degree Price Discrimination

Third degree price discrimination occurs when companies price products and services differently based on the unique demographics of subsets of its consumer base, such as students, military personnel or seniors.

Companies can understand the broad characteristics of consumers more easily than the buying preferences of individual buyers. Third degree price discrimination provides a way to reduce consumer surplus by catering to the price elasticity of demand of specific consumer subsets.

This type of pricing strategy is often seen in movie theater ticket sales, admission prices to amusement parks or restaurant offers. Consumer groups that may otherwise not be able or willing to purchase a product due to their lower income are captured by this pricing strategy, increasing company profits.

 

 

  1. New product development is a growth strategy. Discuss?

Ans:

Developing new products or modifying existing products so they appear new, and offering those products to current or new markets is the definition of product development strategy. There is nothing simple about the process. It requires keen attention to competitors and customer needs now and in the future, the ability to finance prototypes and manufacturing processes, and a creative marketing and communications plan. There are several subsets of product development strategy. 

 

 

Assignment C

Question No.  1          Marks - 10

________________________________________

Specially products include:  

Options          

  1. Luxury cars
  2. Expensive watches
  3. Diamond jewellery
  4. All of the above

Ans: All of the above

 

 

Question No.  2          Marks - 10

________________________________________

Supplies include:      

Options          

  1. Housekeeping and AMC
  2. Material and parts
  3. Office equipment
  4. All of above

Ans: All of the above

           

 

 

Question No.  3          Marks - 10

________________________________________

At the product augmentation level this takes place           

Options          

  1. Differentiation
  2. Brand Positioning
  3. Competition
  4. All of the above

Ans: Competition

           

 

 

Question No.  4          Marks - 10

________________________________________

For Shopping Products consumers compare:        

Options                      

  1. Price
  2. Quality
  3. Style/Design
  4. All of the above

Ans: All of the above

           

 

 

Question No.  5          Marks - 10

________________________________________

Packaging involves activities like:   

Options          

  1. Primary Container
  2. Secondary packing
  3. Shiping package
  4. All of the above

Ans: All of the above

           

 

 

Question No.  6          Marks - 10

________________________________________

Product mix consists of        

Options          

  1. An assortment of products
  2. Only one product line
  3. Only selected producs
  4. An important product

Ans: An Assortment of products

           

 

 

Question No.  7          Marks - 10

________________________________________

Brand positioning can be done based on:  

Options          

  1. Attributes
  2. Benefits
  3. Beliefs and values
  4. All of the above

Ans: All of the above

           

 

 

Question No.  8          Marks - 10

________________________________________

Example of brand extension:          

Options                      

  1. Barbie Doll
  2. Lifebuoy
  3. Amul Milk
  4. All of the above

Ans: all of the above

           

 

 

Question No.  9          Marks - 10

________________________________________

Sales of a product declines due to   

Options                      

  1. Technological advance
  2. Consumer shifts in tastes
  3. increased competition
  4. All of the above

Ans: All of the above

           

 

 

Question No.  10        Marks - 10

________________________________________

Product relaunch can take several forms like:      

Options          

  1. Quality improvements
  2. Feature improements
  3. Style/Design improvements
  4. All of the above

Ans:  All of the above

           

 

 

Question No.  11        Marks - 10

________________________________________

At the maturity stage in PLC:         

Options          

  1. Rate of growth slows down
  2. Profits are negative
  3. Cost of marketing declines
  4. None of the above

Ans: none of the above

           

 

 

Question No.  12        Marks - 10

________________________________________

Some firms withdraw producs in the         

Options                      

  1. Introduction stage
  2. Declining stage
  3. Growth stage
  4. All of above

Ans: Declining stage

           

 

 

Question No.  13        Marks - 10

________________________________________

New products launched by a company could be:  

Options                      

  1. New for Mankind
  2. New for country
  3. new for the company
  4. All of the above

Ans: all of the above

           

 

 

 

Question No.  14        Marks - 10

________________________________________

Idea generation techniques include:           

Options                      

  1. Attribute listing
  2. Brainstorming
  3. Synectics
  4. All of the above

Ans: all of the above

           

 

 

Question No.  15        Marks - 10

________________________________________

Business analysis includes:  

Options                      

  1. Marginal costing method
  2. Feasibility and profiability
  3. Budget preparation
  4. None of the above

Ans: none of the above

           

 

 

Question No.  16        Marks - 10

________________________________________

Rate of adoption is influenced by:  

Options                      

  1. Relative advantage
  2. Brand name and image
  3. price of product
  4. None of the above

Ans: Relative advantage

           

 

 

Question No.  17        Marks - 10

________________________________________

Cost-based pricing method uses:    

Options                      

  1. Mark-up pricing
  2. Marginal cost pricing
  3. Absorption cost pricing
  4. All of the above

Ans: all of the above

           

 

 

Question No.  18        Marks - 10

________________________________________

Competition-based pricing involves:          

Options          

  1. Premum pricing
  2. Discount pricing
  3. Parity pricing
  4. All of the above

Ans: all of the above

           

 

 

Question No.  19        Marks - 10

________________________________________

Value pricing is based on:   

Options          

  1. Value perceived by customers
  2. Total cost of product
  3. Highest price chargeable
  4. None of the above

Ans: Value perceived by customers

           

 

 

Question No.  20        Marks - 10

________________________________________

Product line pricing involves:          

Options                      

  1. High prices for one product line
  2. Different prices in product line, but as a whole optimal
  3. Low prices for all product lines
  4. None of above.

Ans: none of the above

           

 

 

Question No.  21        Marks - 10

________________________________________

Convenience products are low priced and bought frequently     

Options          

  1. True
  2. False

Ans: ture

           

 

 

Question No.  22        Marks - 10

Product line is a group of unrelated product        

Options          

  1. True
  2. False

Ans: true

 

 

Question No.  23        Marks - 10

In social marketing ideas are marketed for improvement of social well-being   

Options          

  1. True
  2. False

Ans: true

 

 

 

Question No.  24        Marks - 10

________________________________________

Capital items include raw materials

Options          

  1. True
  2. False

Ans: false

           

 

 

Question No.  25        Marks - 10

________________________________________

Brands are considered as major enduring assets of a company  

Options          

  1. True
  2. False

Ans: true       

 

 

 

Question No.  26        Marks - 10

________________________________________

Product line consistency refers to how closely related the various product lines are.    

Options                      

  1. True
  2. False

Ans: false

           

 

 

Question No.  27        Marks - 10

________________________________________

Labelling and packageing are one and the same   

Options                      

  1. True
  2. False

Ans: false

           

 

 

Question No.  28        Marks - 10

________________________________________

Product differentiation does not allow a company to fight on the non-price plank.      

Options                      

  1. True
  2. False

Ans: false

           

 

 

Question No.  29        Marks - 10

________________________________________

A declining/weak product is very costly to the firm          

Options                      

  1. True
  2. False

Ans: true

           

 

 

Question No.  30        Marks - 10

________________________________________

The maturity stage does not last long         

Options                      

  1. True
  2. False

Ans: true

           

 

 

Question No.  31        Marks - 10

________________________________________

Skiming Strategy involves high price         

Options                      

  1. True
  2. False

Ans: true

           

 

 

Question No.  32        Marks - 10

________________________________________

Profits decline during the growth stage.    

Options                      

  1. True
  2. False

Ans: true

 

           

 

Question No.  33        Marks - 10

________________________________________

Sales wave research can be used to test market consumer goods.           

Options          

  1. True
  2. False

Ans: true

           

 

 

Question No.  34        Marks - 10

________________________________________

Test marketing will be done after commercialisation       

Options          

  1. True
  2. False

Ans: false

           

 

 

Question No.  35        Marks - 10

________________________________________

Business analysis looks at feasibility as well as profitability.        

Options                      

  1. True
  2. False

Ans: true

           

 

 

Question No.  36        Marks - 10

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