FREE Trial

Real estate brokers typically charge a fixed percentage of a homes sales price. Advertising agencies follow a similar price strategy.

Question:

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?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 66% (12 reviews)

This fixed commission strategy is an accepted practice because it makes pricing very easy T…View the full answer


answer-question
Answered By
tutor-profile-image
CHARLES AMBILA
I am an experienced tutor with more than 7 years of experience. I have helped thousands of students pursue their academic goals. My primary objective as a tutor is to ensure that students have easy time handling their academic tasks.
5.00+ 107+ Reviews 289+ Question Solved
Related Book For  answer-question
Strategic Marketing

Strategic Marketing

ISBN: 978-0078028908

10th edition

Authors: Nigel Piercy and David Cravens

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: July 30, 2015 03:04:38
See More Questions

Students also viewed these Marketing questions

Q:
What is insider trading? What are the arguments against the practice? How are equal information and equal access related? How are they distinct? Are either of them possible and, if so, to what extent?
A:
The insider trading is a term normally refers to an illegal activity However this might be both the legal as well as illegal in nature It is illegal w......
Q:
What are the arguments for prosecuting, convicting, and punishing corporations? Does holding corporations criminally responsible serve any social purpose? What are the arguments against prosecuting,...
A:
Canada as well as most common law jurisdictions has taken the position that a corporation is capable of committing a crime The arguments for prosecuting convicting and punishing corporations relate to......
Q:
What are the arguments against increased social responsibility?
A:
Business managers are responsible primarily to stockholders so management must be concerned with pro......
Q:
DAT, Inc., needs to develop an aggregate plan for its product line. Relevant data are The forecast for next year is Management prefers to keep a constant workforce and production level, absorbing...
A:
Aggregate planning is the process of developing analyzing and maintaining a preliminary approximate schedule of the overall operations of an organization The aggregate plan generally contains targeted......
Q:
An advertising project manager has developed a program for a new advertising campaign. In addition, the manager has gathered the time information for each activity, as shown in the table below. a....
A:
a Calculated activity times are Activity Expected Duration A 4 B 6 C 4 D 12 E 7 F 9 G 5 b The total......
Q:
On the double-sided PC board in Figure 484, identify each group of series resistors and determine its total resistance. Note that many of the interconnections feed through the board from the top side...
A:
In Figure 484 the double sided PC board contains multiple groups of series resistors To determine th......
Q:
Coline has the following capital gain and loss transactions for 2022. After the capital gain and loss netting process, what is the amount and character of Colines gain or loss? Short-term capital...
A:
Coline first nets the short term gains and losses against eac......
Q:
Jiri Klimecek was a member of a group that overrode copyright protection in movies, video games, and software and then made them available for download online. Klimecek bought and installed hardware...
A:
Klimecek committed copyright infringement or piracy and was not entitled to have his sentence reduce......
Q:
In your own words discuss three rights that a shareholder has when they own common shares in an organization. Which of these rights does an individual have if they own preferred shares?
A:
Common shareholders typically have three primary rights in an organization 1 Voting Rights Common sh......
Q:
You are part of a research team investigating the effects of aerobic cardiovascular and moderate weight resistance training on the BMI (Body Mass Index) of moderately overweight but not obese teens...
A:
a What was the average change in BMI for subjects in each of the four groups These averages should be expressed as confidence intervals i e Provide a 95 confidence interval for the change in BMI for s......
Q:
Indicate how a fast-food chain can estimate the price elasticity of a proposed new product such as a new chicken sandwich.
A:
Price elasticity is the percentage change in the quantity sold of a brand when the price......
Q:
Cite examples of businesses to which the experience-curve effect may not be applicable. What influence may this have on price determination?
A:
Companies with very specialized products that are custom desi......
Q:
Briefly explain whether you agree with this statement: Real GDP in 2016 was $16.7 trillion. This value is a large number. Therefore, economic growth must have been high during 2016.
A:
You should disagree with this statement Real GDP itself is not a measure of......
Q:
True or False Cash flow statement helps in assessing the capacity of a business entity to meet its long-term obligations.
A:
False The cash flow statement primarily focuses on a business entity s cash flows related to its ope......
Q:
True or False Shorter the duration of the operating cycle, more is the need for net working capital.
A:
True Net working capital refers to the difference between a company s current assets suc......
Q:
Fill in the Blank Retained Earnings during a period = Revenue (Expenses + __________).
A:
Retained Earnings during a period Revenue Expenses Dividends Retained Earnings is an important compo......
Q:
What is a Cash Flow Statement? What is the main purpose of such a statement?
A:
A Cash Flow Statement is a financial statement that provides a summary of a company s cash inflows and outflows during a specific period of time It sh......
Q:
True or False Cash from operations are also known as trading profits.
A:
False Cash from operations and trading profits are not the same Here s the distinction Cash from Ope......
Q:
Create the logic for the dice game Pig, in which a player can compete with the computer. The object of the game is to be the first to score 100 points. The user and computer take turns rolling a pair...
A:
Pseudocode start Declarations num dice1 num dice2 num userCount num computerCount num userTurn num L......
Q:
What recommendations would you make to Big Four firms to help them (1) avoid confrontations with governmental officials in an authoritarian society and (2) deal effectively with such confrontations...
A:
A source used in developing this case noted that one reason the Big Four firms have been so successf......
Q:
With regard to differences tests, briefly define and describe each of the following: a. Null hypothesis b. Sampling distribution c. Significant difference
A:
a Null hypothesis The hypothesis that the difference in thei......
Q:
Relate the formula and identify each formulas components in the test of significant differences between two groups for when the question involved is. a. a yes/no type. b. a scale variable question.
A:
a A yes no type This is a nominal scale situation......
Q:
Are the following two sample results significantly different? Sample One Mean: 10.6 Std. dev: 1.5 n= 150 Sample Two Mean: 11.7 Std. dev: 2.5 n= 300 Your Confidence Level 95% 04. Finding?
A:
Means and standard deviations are provided in this example so the formula......
Human Relations Interpersonal Job Oriented Skills 11th Edition - ISBN: 0135109418 - Free Book