Using a real-world example, explain the concept of dynamic pricing.
When customers are split into 2+ groups and are charged different prices for the same good because they have different sensitivities to prices (e.g. Uber)
Outline one advantage and one disadvantage of selling via retailers
Advantage: producer can sell larger quantities, reduced distribution costs vs. Disadvantage: no direct contact, price often higher for consumers
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thief
Give points!
5
10
15
20
25
shark
Other team loses 20 points!
Okay!
shark
Other team loses 20 points!
Okay!
lifesaver
Give 10 points!
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15
Outline one advantage and one advantage of operating in a mass market.
Advantage: Total sales are high, Opportunities for growth, Spread out risks vs. high competition, high costs of advertising, standardized products
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15
Outline one advantage and one disadvantage of penetration pricing.
Advantage: Helps new products create impact, Ensure sales, Market share vs. Disadvantage: Lower profit / unit, signal lower quality
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15
Differentiate between informative vs. persuasive advertising.
Informative: emphasis of advertising is to give full info; Persuasive advertising: tries to persuade the consumer they really need the product and should buy it
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15
Identify TWO features of a product at the maturity stage
Sales growth but slower, competition is intense, profits at its highest
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10
Explain when agents are most likely needed as a distribution channel.
When selling abroad --> local knowledge
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15
Identify one advantage and one disadvantage of conducting primary research
Advantage: up to date, first-hand info, not available to others vs. disadvantage: can be expensive, not available right away
