Estimate of the Economic Value of a Product

BMKT 522 Test 3 Spring 2020
NAME:
Fill in the Blanks (Answer any 5): 5 points each.
Question 1
When a firm seeks to estimate the economic value of its product when deciding the appropriate
price for its product, the TWO main components it should include in that estimate are
cost of production is the main part of price. No firm can sell its merchandise or services at less than the price of product. Thus, before rate fixation, it is important to collect data linking to the cost of product and keep that in mind. Demand for Goods:
knowledge of demand for services and products in the market be undertaken before price fixation. If demand is proportionately more than supply, higher value can be made.
and ONE challenge in calculating the value of the components is:
Lack of data In case it is difficult to obtain substantial information concerning appropriate product levels, one requires to estimate the lacking values. That, in turn, demands extensive understanding about the industry, market experience and knowledge with excellent analytical methods.
Also, ONE reason why this economic value estimate of the product may differ from the customers’ perceived value may be
When analyzing the difference between perceived benefit and perceived cost, if the distinction is
positive, consumer perceived value is high, suggesting customers will buy a product or service.
There are many procedures companies can use to develop customers’ perceived value of their
Merchandise Price is not the most influential thing in resolving a customer’s perceived value. Question 2
TWO reasons why the sales decline stage may be reached in a product life cycle of any product category are:
The decline stage describes similar role for products. The decline stage in the merchandise life cycle is when a merchandise evaporates as a result of reduced or negative growth.
and While most companys may exit at this stage, a few company may still sell in this merchandise market because:
these few firms modify their product and promotion strategies at this stage in the following ways: A firm will use a focused approach at this stage to emphasize the uniqueness of the new merchandise or service to a small group of consumers. These consumers are typically associated to in the marketing literature as the early adopters or innovators. Selling tactics during this degree are designed to explain the merchandise and its uses to customers and thus create recognition for the product and the industry. firms found a niche for dominance within an production during this phase. For example, they frequently strive to establish early perceptions of product quality, technological superiority, or beneficial relationships with vendors within the supply chain to develop a aggressive advantage.
Question 3
Consumers often times desire an assortment of products when they make their purchases. An example of a product category where such an assortment of products is a critical function for a channel is:
Whether a firm be a one person enterprise or one that operates thousands of people and makes billions in sales, all are in market to serve the needs of businesses. because:
These firms must be c...