{"id":425,"date":"2021-07-29T09:50:34","date_gmt":"2021-07-29T13:50:34","guid":{"rendered":"https:\/\/pressbooks.library.ryerson.ca\/marketing\/chapter\/8-4-discussion-questions-and-activities\/"},"modified":"2021-08-07T11:19:16","modified_gmt":"2021-08-07T15:19:16","slug":"8-4-discussion-questions-and-activities","status":"publish","type":"chapter","link":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/chapter\/8-4-discussion-questions-and-activities\/","title":{"raw":"8.4 Discussion Questions and Activities","rendered":"8.4 Discussion Questions and Activities"},"content":{"raw":"
\r\n
\r\n

REVIEW QUESTIONS<\/strong><\/p>\r\n\r\n<\/header>\r\n

\r\n
    \r\n \t
  1. What are the steps in the pricing framework?<\/li>\r\n \t
  2. In addition to profit-oriented objectives, what other types of pricing objectives do firms utilize?<\/li>\r\n \t
  3. What factors do organizations consider when making price decisions?<\/li>\r\n \t
  4. How do a company\u2019s competitors affect the pricing decisions the firm will make?<\/li>\r\n \t
  5. What is the difference between fixed costs and variable costs?<\/li>\r\n \t
  6. Explain the difference between a penetration and a skimming pricing strategy.<\/li>\r\n \t
  7. Describe how both buyers and sellers use sealed bid pricing.<\/li>\r\n \t
  8. Identify an example of each of the following: odd-even pricing, prestige pricing, price bundling, and captive pricing.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n
    \r\n

    DISCUSSION QUESTIONS<\/strong><\/p>\r\n\r\n<\/header>\r\n

    \r\n
      \r\n \t
    1. What is the difference between leader pricing and a loss leader?<\/li>\r\n \t
    2. Which pricing approaches do you feel work best long term?<\/li>\r\n \t
    3. Which pricing strategies have you noticed when you shop?<\/li>\r\n \t
    4. What new products have you purchased in the last two years that were priced using either a penetration or a skimming approach?<\/li>\r\n \t
    5. What are the steps in the pricing framework?<\/li>\r\n \t
    6. In addition to profit-oriented objectives, what other types of pricing objectives do companies utilize?<\/li>\r\n \t
    7. What factors do companies consider when making price decisions?<\/li>\r\n \t
    8. How do a company\u2019s competitors affect the pricing decisions the company will make?<\/li>\r\n \t
    9. What is the difference between fixed costs and variable costs?<\/li>\r\n \t
    10. We discussed in this chapter that Facebook offers consumers a \u2018free\u2019 service in exchange for their information. Could it be that whoever pays money for a product\/service is the actual customer, therefore in this case the advertiser is the customer and the users are the product. If you are a Facebook user how to you feel about considered \u2018the product\u2019?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n
      \r\n

      ACTIVITIES<\/strong><\/p>\r\n\r\n<\/header>\r\n

      \r\n
        \r\n \t
      1. In order to understand revenues and costs, get a two-liter bottle of diet soft drink, ten to twenty cups, and a bucket of ice. Fill each cup with ice and then fill it with the soft drink. Assume each cup of soft drink sells for at least $1 and you paid $1 for the soft drink and $1 for the cups. How much profit can you make?<\/li>\r\n \t
      2. Go to a fast-food restaurant for lunch. Figure out how much the price of a bundled meal is versus buying the items separately. Then decide if you think many consumers add a drink or fries because they feel like they\u2019re getting a deal.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n<\/div>","rendered":"
        \n
        \n
        \n

        REVIEW QUESTIONS<\/strong><\/p>\n<\/header>\n

        \n
          \n
        1. What are the steps in the pricing framework?<\/li>\n
        2. In addition to profit-oriented objectives, what other types of pricing objectives do firms utilize?<\/li>\n
        3. What factors do organizations consider when making price decisions?<\/li>\n
        4. How do a company\u2019s competitors affect the pricing decisions the firm will make?<\/li>\n
        5. What is the difference between fixed costs and variable costs?<\/li>\n
        6. Explain the difference between a penetration and a skimming pricing strategy.<\/li>\n
        7. Describe how both buyers and sellers use sealed bid pricing.<\/li>\n
        8. Identify an example of each of the following: odd-even pricing, prestige pricing, price bundling, and captive pricing.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n
          \n
          \n

          DISCUSSION QUESTIONS<\/strong><\/p>\n<\/header>\n

          \n
            \n
          1. What is the difference between leader pricing and a loss leader?<\/li>\n
          2. Which pricing approaches do you feel work best long term?<\/li>\n
          3. Which pricing strategies have you noticed when you shop?<\/li>\n
          4. What new products have you purchased in the last two years that were priced using either a penetration or a skimming approach?<\/li>\n
          5. What are the steps in the pricing framework?<\/li>\n
          6. In addition to profit-oriented objectives, what other types of pricing objectives do companies utilize?<\/li>\n
          7. What factors do companies consider when making price decisions?<\/li>\n
          8. How do a company\u2019s competitors affect the pricing decisions the company will make?<\/li>\n
          9. What is the difference between fixed costs and variable costs?<\/li>\n
          10. We discussed in this chapter that Facebook offers consumers a \u2018free\u2019 service in exchange for their information. Could it be that whoever pays money for a product\/service is the actual customer, therefore in this case the advertiser is the customer and the users are the product. If you are a Facebook user how to you feel about considered \u2018the product\u2019?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n
            \n
            \n

            ACTIVITIES<\/strong><\/p>\n<\/header>\n

            \n
              \n
            1. In order to understand revenues and costs, get a two-liter bottle of diet soft drink, ten to twenty cups, and a bucket of ice. Fill each cup with ice and then fill it with the soft drink. Assume each cup of soft drink sells for at least $1 and you paid $1 for the soft drink and $1 for the cups. How much profit can you make?<\/li>\n
            2. Go to a fast-food restaurant for lunch. Figure out how much the price of a bundled meal is versus buying the items separately. Then decide if you think many consumers add a drink or fries because they feel like they\u2019re getting a deal.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"author":307,"menu_order":4,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[48],"contributor":[],"license":[],"class_list":["post-425","chapter","type-chapter","status-publish","hentry","chapter-type-numberless"],"part":414,"_links":{"self":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapters\/425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/wp\/v2\/users\/307"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapters\/425\/revisions"}],"predecessor-version":[{"id":581,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapters\/425\/revisions\/581"}],"part":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/parts\/414"}],"metadata":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapters\/425\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/wp\/v2\/media?parent=425"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/pressbooks\/v2\/chapter-type?post=425"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/wp\/v2\/contributor?post=425"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.library.torontomu.ca\/marketing\/wp-json\/wp\/v2\/license?post=425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}