Real estate brokers typically charge a fixed percentage of a home’s sales price. Advertising agencies follow a similar price strategy. Discuss why this may be sound price strategy. What are the arguments against it from the buyer’s point of view?
Answer to relevant QuestionsCite examples of businesses to which the experience-curve effect may not be applicable. What influence may this have on price determination? Consider the online promotion activities described in the INTERNET APPLICATION. Discuss how these initiatives offer compelling advantages over traditional promotional strategies. What are the important considerations in determining a promotion budget? The ETHICS APPLICATION highlights several aspects of ethics that are relevant to salespeople. Discuss why salespeople are more likely to be confronted with ethical situations than manufacturing employees. What questions would you want answered if you were trying to evaluate the effectiveness of a business unit’s sales force strategy?
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