Pricing

Pricing

Video 1: https://youtu.be/wajb-HO2Qao
Video 2:https://youtu.be/gPAGip9GOIU

These two videos should provide you with a better understanding of different pricing strategies that can be pursued by marketers and companies. They should supplement the material that has been included in Module 11 and give you deeper knowledge on the subject.

Q1
The suggested retail price and wholesale prices of Cowgirl Chocolates products are displayed in Exhibit 2 along with the product and packaging costs.
Based on this information, discuss the relative merits of using a cost-based, demand-based, or competition-based pricing method?
Q2
Has anyone tried to order the chocolates online? Have you noticed anything unusual? How can you address this issue?
Q3
What is a reasonable price? All businesses want to decrease their costs, but how? How can you decrease Cowgirl’s management and distribution costs? Also, are you suggesting that Cowgirl’s target market are price sensitive?
Q4
Penetration and skimming marketing strategies are two pricing strategies used by companies to introduce a new product to market. Which strategy do you suggest for Cowgirl chocolates’ pricing and why?