Price Of Product
UNIVERSITI MALAYSIA SARAWAK
Assignment EBA 6423
Strategic Marketing
Individual Assignment
Case 1: Price the Product
Name: Martina ak Minggat
Matrix no: 12030020
Prepared for: Prof Dr Ernest Cyril De Run
CASE STUDY 1:
Which option would you choose, and why?
1. No.
Pricing the entire menu at $1.29 would make things simple for the company and consumers, as well as offering the most potential profit per item. However, the challenge would be to convince consumers that the $1.29 truly was a value when many competitors were selling items at 99 cents. But in this case, this price seems does not work as the sale are not that favorable.
2. No.
The second option priced burritos at $1.29 along with specialty items, and left the price of tacos and nachos at 99 cents. Survey data showed that consumer intent and overall liking of this option was much higher than under the first option. This price strategy is quite good and have a better sales than price strategy one. However, still not the best pricing option for the menu.
3. Yes.
The final option included pricing some burritos at $1.29, a third at $1.19 (as well as the specialty item), and tacos and nachos at 99 cents. This particular menu and pricing mix yielded strong ratings of uniqueness, overall liking and purchase intent, though the pricing structure was more complex and would require that the firm educate consumers so they understood why certain items were priced the way they were. Overall, this is the best pricing strategy as they use psychological pricing that customer have 3 choices of price menu based on the value menu. In this case, customer might understand why certain items cost more than others this is because it is price based on each value.
Assignment EBA 6423
Strategic Marketing
Individual Assignment
Case 1: Price the Product
Name: Martina ak Minggat
Matrix no: 12030020
Prepared for: Prof Dr Ernest Cyril De Run
CASE STUDY 1:
Which option would you choose, and why?
1. No.
Pricing the entire menu at $1.29 would make things simple for the company and consumers, as well as offering the most potential profit per item. However, the challenge would be to convince consumers that the $1.29 truly was a value when many competitors were selling items at 99 cents. But in this case, this price seems does not work as the sale are not that favorable.
2. No.
The second option priced burritos at $1.29 along with specialty items, and left the price of tacos and nachos at 99 cents. Survey data showed that consumer intent and overall liking of this option was much higher than under the first option. This price strategy is quite good and have a better sales than price strategy one. However, still not the best pricing option for the menu.
3. Yes.
The final option included pricing some burritos at $1.29, a third at $1.19 (as well as the specialty item), and tacos and nachos at 99 cents. This particular menu and pricing mix yielded strong ratings of uniqueness, overall liking and purchase intent, though the pricing structure was more complex and would require that the firm educate consumers so they understood why certain items were priced the way they were. Overall, this is the best pricing strategy as they use psychological pricing that customer have 3 choices of price menu based on the value menu. In this case, customer might understand why certain items cost more than others this is because it is price based on each value.