Pricing Strategy

Pricing Strategy

  1. Why is pricing more critical to the bottom line (profit) than sales volume?
    Explain the underlying logic of why it is possible that a 1% increase in price (with no change in sales volume) contributes over 3 times more profit than a 1% increase in sales volume (without a price increase) for the average company.
  2. Why is the customer’s perceived value of a product typically less than the true economic value (TEV)?
    a. How might a marketer establish a perceived value close or equal to the TEV?
    b. What must be done well for a firm to successfully raise its prices?
  3. It is clear that the value-based pricing approach results in substantially higher profits than any other approach, yet most companies still use the cost-oriented pricing approach. Why?
  4. Pricing Strategy

Sample Solution

 

variety of these merchandise are dairy primarily based. The purchaser demand for a non-diary primarily based probiotic has elevated due to lactose intolerance (Gupta et al. 2011). Fermented plant products offer a non-dairy opportunity that includes probiotics with critical health blessings. The application and  Pricing Strategy possibility of fermenting sea greens is a incredibly new idea, as maximum of the fermented merchandise in the meals industry includes terrestrial ingredients. moreover, seaweed comprise detrimental polysaccharides fermentation compounds, making it a topic in need of in addition stu Pricing Strategy dies. “…brown algae incorporate alginate and fucoidan as primary components. pink algae incorporate galactan (e.g. agar carrageenan) as a main issue. inexperienced algae and seagrasses contain cellulose and hemicellulose as foremost components (Uchida et al. 2013).” but latest research on brown and purple sea vegetable species confirmed fermentation achievement via researching lactic acid bacteria starter cultures and different key variables. Gupta et. al 2011 studied the fermentative functionality of 3 Irish brown seaweeds: Himanthalia elongata, Laminaria digitata, and Laminaria saccharina by way of the usage of the starter culture L. plantarum. Key variables that have been studied had been warmne Pricing Strategy ss remedy of sea veggies and aerobic/anaerobic conditions. 7.1 warmness treatment: Gupta et. al 2011 tested raw and warmth treated sea veggies in a initial observe with the intention to decide the fine growth mechanisms for lactic acid micro organism. For the warmth treatment, sea veggies have been placed in an autoclave at 95 C for 15 min. The consequences from this preliminary observe cautioned that increase of lactic acid bacteria could not be sustained in any of the uncooked sea vegetable species, but within the warmness remedy of L. digitata, and L. saccharina lactic acid bacteria growth did arise. therefore, the heat remedy of sea vegetables should increase fermentative functionality. the warmth remedy led to an boom in the amount of sugars that might be quite simply used by L. plantarum (Gupta et al, 2011). furthermore, heat treatment could assist smooth the microbial surface load on the sea Pricing Strategy  vegetables and permit vitamins and sugars in the sea greens to be greater to be had (Gupta et al, 2011). normal, this study confirmed that heat handled L. digitata and L. saccharina had been suitable substrates for lactic acid fermentation with the aid of L. plantarum. The effects confirmed that L. digitata obtained the highest cell populations, even as L. saccharina finished faster fermentation time because its most cellular boom happened in less time (Gupta et. al 2011). 7.2 aerobic conditions: Gupta et. al 2011 also examined the aeration conditions in regards to lactic acid bacteria boom and acetic acid production through converting the speed of agitation. Microaerophillic and aerobic conditions have been tested and increase kinetics, such as the lag duration and most particular boom charge of the L. plantarum have been measured. Cultures that display expanded boom all through fermentation have greater favorable growth situations. The agitation velocity of the culture motivated the amount of lactic acid micro organism growth because whilst the agitation speed changed into accelerated, the maximum cell increase decreased. that is because of the extraordinary metabolic approaches that arise from the presence of oxygen in fermentation. Homofermentative and hetermentative micro organism produce greater acetic acid when oxygen is gift (Gupta et. al 2011). 7.three Fermentation components: Ratanaburee et. al 2011 studied the use of L. plantarum as a seaweed starter culture via researching the most effective situations and components for generating a functional fermented red seaweed beverage. Dried Gracilaria fisheri, a red sea Pricing Strategy weed this is commonly discovered in Thailand, became used on this observe as it includes carotenoids, polyphenols, and phenolic acid that can be beneficial for human consumption (Ratanaburee et. al 2011). Ratanaburee et. al 2011 studied four distinct fermented plant beverage formulations. the first formulation, treatment A, consisted of purple seaweed, sugar, and water. treatment B, become just like remedy A, however had the addition of a five% starter culture of L. plantarum. remedy C changed into also just like remedy A, but it covered an multiplied sugar attention and the addition monosodium glutamate (MSG). treatment D changed into the same as remedy C, but had the addition of a 5% starter way of life L. plantarum. Fermenting seaweed has the capacity to be a practical food because of the presence of γ-aminobutyric acid (GABA) in the product. GABA is often determined in fermented ingredients because some lactic acid micro organism (including Lactobacillus brevis, L. plantarum and Lactococcus lactis) have the capability to provide it. The functions of GABA were regarded to sav Pricing Strategy e you diabetes, inhibit the growth of cancer cells, and decrease high blood pressure (Ratanaburee et. al 2011). “GABA is a non-protein amino acid compound that is synthesized by using decarboxylation of glutamic acid via the glutamate decarboxylase enzyme (Komatsuzaki et al. 2008)” because of this manner, MSG was added into some of the treatment beverage formulas to determine if it can growth the quantity of GABA in these formulation (Ratanaburee et. al 2011). Ratanburee et. al. 2011 determined that there are severa Pricing Strategy l elements which could affect the exceptional of the completed fermented product which include: the addition of a starter way of life, addition of MSG, and converting sugar concentrations (Ratanburee et. al. 2011). The treatments that were inoculated with a starter subculture had a higher quantity of useful microbes, total micro organism matter (TBC), and LAB remember after the fermentation length of 60 days. but, LAB remained the dominant micro organism in all treatments and nearly all the bacteria that turned into present in the treatment was LAB. Ratanaburee et. al 2011 discovered that adding MSG encouraged the GABA content material because remedy D, the remedy with the added MSG, produced the best quantity of GABA throughout the fermentation length. but, the MSG remedies scored the bottom on a sensory test that measured flavor, scent, and color due to its salty taste. furthermore, the third treatment did now not undergo sensory evaluation because of a decrease GABA manufacturing and a salty taste. lastly, changing the sugar conte Pricing Strategy nt confirmed that as the sugar content reduced the acidity stage accelerated.>

Is this question part of your Assignment?

We can help

Our aim is to help you get A+ grades on your Coursework.

We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposals

Header Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples