Describe the three possible relationships among perceived value, price and cost, ignoring competition for the present
What will be an ideal response?
a. Perceived value > price > cost – in this case, the marketing manager has set a price, either intentionally or mistakenly, below what customers would be willing to pay for the product or service. From the customer's standpoint, the product is a bargain.
b. Price > perceived value > cost – in this unfortunate situation, the manager has set a price that is higher than the target market is willing to pay. The customer looks at this situation as a bad deal and, unless the company has a monopoly or some other kind of market power, does not buy.
c. Price > cost > perceived value – this scenario clearly represents failure. Usually, such products are weeded out in the new product development process. If not, they are ultimately withdrawn from the market.
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a. True b. False Indicate whether the statement is true or false
Which of the following refers to a situation where downward price moves by one competitor force "follower moves" by other competitors in order to minimize lost profits?
A) a technology trap B) competitive benchmarking C) the prisoner's dilemma D) a monopoly market E) a free market situation
Components of a waiting line system include arrivals, servers, and the calling population
Indicate whether this statement is true or false.
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A. product invention B. product extension C. product adaptation D. product integration E. product customization