Price (case)

Case Assignment

To start off this assignment, first make sure
to review the required background materials carefully and make sure you have a
solid understanding of the various pricing strategies and when they are
typically used.  There is also a listing of optional readings that may
help you with the concepts and could serve as useful references for this
assignment.

Once you have finished reviewing the
background materials, think carefully about the following situations and write
a four to five page paper discussing what
pricing strategy you would recommend in each of the situations.  For each
recommendation, make sure to explain your reasoning and to cite one of the
required background readings in support of your recommendation. Make sure to
cite at least three sources from the background materials total in your paper:

1. A company has
   developed a new 3D television with outstanding displays.  The company has
   a patent on a new technology that doesn’t require glasses to see the 3D effect
   and has a display far better than those of any competitor’s 3D
   televisions.  The company still has to compete with other television
   manufacturers, but because of the patent and superior technology it is likely
   to have a large advantage in the 3D television market for at least a year or
   two.
2. A brand new company
   has developed a new dishwater detergent which is comparable to other major
   brands in quality, but the company has developed a new manufacturing technology
   that over a period of time should be able to produce detergent at a cheaper
   cost than any competitor.  The cost of the new manufacturing equipment was
   high, but once the equipment is paid off it should be very cheap to produce
   each bottle of detergent.
3. You have just opened
   up a new electronics shop and Apple will be releasing their latest iPhone in a
   few days.  You are confident that once customers come into your shop they
   will be impressed with your large selection and knowledgeable and friendly
   sales staff and will become loyal customers.  However, given the nearby
   location of Best Buy and other popular electronics shops it will be a challenge
   to get customers into your shop.  So the first big pricing decision you
   have to make is what to charge for iPhones.
4. You have started a new
   fashion company, and your partner in this business is one of the top designers
   in Italy.  You and your business partner’s plan is to become known as one
   of the premier manufacturers and designers of blue jeans in the world, and hope
   to have a very high end brand well known among the wealthy and fashion
   conscience.

Assignment Expectations

• Answer the assignment
  questions directly.
• Stay focused on the
  precise assignment questions, don’t go off on tangents or devote a lot of space
  to summarizing general background materials.
• Make sure to use
  reliable and credible sources as your references. Articles published in
  established newspapers or business journals/magazines are preferred.  If
  you find articles on the internet, make sure it is from a credible source.
• Reference your sources
  of information with both a bibliography and in-text citations. See the Student Guide to Writing a High-Quality
  Academic Paper, including pages
  13-14 on in-text citations. Another resource is the “Writing Style Guide”,
  which is found under “My Resources” in the TLC portal.

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