Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 3, Problem 3DQ
Summary Introduction
Interpretation: Explain the positive /negative effect, the product price is likely to have on what a customer feels about and expects from the product.
Concept Introduction: Pricing of a product is based on many factors, one of the important ones being the features built into the product. This is what is called the quality of design. The other factors may be advertising, branding, incentives etc. which may influence the customers’ decision.
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Chapter 3 Solutions
Practical Operations Management
Ch. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6P
Ch. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21PCh. 3 - Prob. 22PCh. 3 - Prob. 23PCh. 3 - Prob. 24PCh. 3 - Prob. 1.1QCh. 3 - Prob. 1.2QCh. 3 - Prob. 1.3QCh. 3 - Prob. 1.4QCh. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Prob. 3.3Q
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- 2. Customers take into account various factors beyond just the monetary value when evaluating the worth of a product or service. The concept of 'Total Value' involves considering the overall perceived benefits in relation to the overall perceived price. Demonstrate your understanding of this concept by discussing the following scenarios, and for each, assess the Total Benefits and Total Price a Customer may consider: A Vehicle A Haircut A Laptop A Degree A Shoearrow_forwardA heavy truck parts maker is able to tender on a pre-production study contract of a new type of truck ventilator unit worth $25,000 net profit if it wins the contract. Tendering costs would be about $2,000. The chances of winning the contract are 50 percent. If the company wins the contract, it must decide on the level of marketing it should make to increase its chances of getting further production contract worth $55,000 net profit. Promotion at a high level costs $18,000 with a resulting probability of winning the contract of 0.8. At medium level promotion, it costs $12,000 with a probability of 75 percent and at a low level, it costs $8,000 with a probability of 60 percent. Should the initial study contract be lost, the company can still bid on the production contract at an additional tender cost of $6,000. The probability of winning the production contract from this stage is 30 percent. a) Draw a decision tree to show the relationship between the various options which arise as the…arrow_forwardBased on the scenario, how can you define the importance of the price of a product in attractingcustomers?arrow_forward
- When buying products, consumers expect certain outcomes from the purchase. What is that?arrow_forwardConsumers often rationalize their purchase of a new product with a statement such as "I bought it because it was on sale 15% off the original price." What ate the prospects that this type of customer will become a loyal consumer to this product? What must happen in order for such customers to become loyal to the product and hopefully the brand?arrow_forwardWhich of the following is an internal factor that affects pricing decisions in a company? * ) The forces of demand and supply in the market Consumers' perception of value The degree of inflation in the economy The overall marketing strategy of the companyarrow_forward
- Think of a type of customer that you know reasonably well. Try to identify some unmet needs of this type of customer and to think of some new features of the products and/or services they purchase that would excite them. Why do you think these features are not being offered?arrow_forwardWhen is a business most likely to adjust the marketing mix of a product? If costs change If customer needs change If management changes If Price changesarrow_forwardThink of a type of customer that you know reasonably well. Try to identify some unmet needs of this type of customer and to think of some new features of the products and/or services they purchase that would excite them. Why do you think these features are not being offered? This is a discussion questionarrow_forward
- When can one say that a certain product has “value?”arrow_forwardWrite four brands of food and drink,then write the name of the brand that is the competitionarrow_forwardImagine you run a small apparel shop in rural India and positive about sales of T-shirt this year (2021) due to good monsoon. You ‘signed a contract’ with manufacturer to buy 100 T-shirt of four different colors of equal numbers at Rs 200 each and paid advance 5000 Rs for it. Manufacturer supplied all the T-shirt of same color. Discuss the remedy you have in your hand against the manufacarrow_forward
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