Deceptive or Illegal PricingFirms use many different pricing tactics to try to improve their market share. Some are perfectly legitimate and can be considered fairpricing practices, whereas others are deceptive or even illegal. For this activity you will need to review the types of practicesassociated with illegal and unethical pricing strategies.Prices tend to fluctuate naturally and respond to varying market conditions. Although we rarely see firms attempting to control themarket in terms of product quality or advertising, they often engage in pricing practices that can unfairly reduce competition or harmconsumers directly through fraud and deception. A host of laws and regulations at both the federal and state levels attempt to preventunfair pricing practices, but some are poorly enforced, and others are difficult to prove.Roll over each item and read the description to determine which type of illegal or unethical price strategy is beingused. Then drag the item to the appropriate price strategy.Harm competitor'sbusinessPush nonsale itemsonlySell below store's costHorizontal collusionManufacturer favorsone retailerPrice StrategyLoss Leader PricingBait and SwitchPredatory PricingPrice DiscriminationPrice FixingExampleHorizontal collusion

Pricing is a strategic decision which can help a firm in gaining leverage over competitors if the…

Answered: Harm competitor's business Push nonsale…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 2DYMP

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Penetration pricing and price skimming are marketing strategies commonly implemented when companies launch new products or services. Both approaches have worked for businesses, but you have to understand how your price relates to your overall marketing and promotions strategies. Penetration pricing relies on a low upfront price to attract customers, while skimming is the use of high upfront prices to maximize short-term profits from the most eager and interested customers. Compare and contrast market skimming and market penetration pricing with the help of above definitions. Discuss how companies adjust their prices to take into account different types of customers and situations?
Pricing has objective and subjective constraints when Marketing Managers must set a value based for the products and services they offer. Under which circumstances in pricing a newly launched product might support skimming or penetration marketing? Create an example which will defend your rationale to all your stakeholders.
At a strategic meeting of your company, other managers in the meeting want to know the company’s pricing objectives. Asthe manager responsible, critically analyse alternative pricing objectives the company is pursuing.
Cost-based pricing is sometimes justified by arguing that it ensures that a company receives a good profit on the products that it sells. Describe a problem with this justification. What does this problem have to do with the main disadvantage of cost-based pricing
It is recommendable that the Company uses product and pricing strategy, which can provide a twin approach (Koester, 2011). The strategy should focus on ensuring smooth entry of a new product within a targeted marketplace as well as strengthening prices as the product continue to establish itself within the product life cycle. To this end, it is recommendable that the company uses introductory pricing strategies to facilitate a smooth entry.What is your understanding of this paragraph? What is Nike recommended to do from this?
What are the advantages of secondary-market pricing?
what pricing approach is it when an athletic commission prices different hockey tickets depending upon stadium seat location (closer or further from the ice, behind the goalkeeper, etc.) 1. Bundling 2.Peak Load Pricing 3.Indirect Segmentation Price Discrimination 4.Direct Segmentation Price Discrimination 5.Complete Price Discrimination
For this discussion, use the following hypothetical scenario as the basis for your response: Your business partner is strongly opposed to your proposal to charge your largest customers lower prices for your web-based services than what you will charge your smaller customers. She is arguing it is unethical, unfair, and possibly illegal. Address the following in your discussion post: Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship. What degree is this type of price discrimination? How will the plan increase revenue? Why will both groups of customers be satisfied with the deal? Why is this a legal form of pricing?
What are the advantages and disadvantages of profit-oriented pricing?
Name and describe the types of costs marketers must consider when setting prices. Describe the types of cost based pricing and the methods of implementing each.
Imagine an organization has asked you to create its pricing strategy. You decide to base your proposed price recommendations on possible pricing objectives.Examine how price decisions should be adapted for the pricing objective.
If an item is particularly valuable to a customer, using customer-based pricing might suggest a price that is higher than the one that would be indicated by use of a standard markup. Describe a situation where the use of customer-based pricing would suggest a price that is lower than the one that would be indicated by use of a standard markup.

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Harm competitor's business Push nonsale items only Sell below store's cost Horizontal collusion Manufacturer favors one retailer Price Strategy Loss Leader Pricing Bait and Switch Predatory Pricing Price Discrimination. Price Fixing Example Horizontal collusion