A prestigious kitchen appliance company specializes in European-style custom ovens. Its product line started with smaller high-end ovens with their signature styling and now includes large ovens that can price over $150,000 and are available in a wide variety of colors and finishing features. How might the decision to carry large, highly customizable and expensive ovens impact the company?

 
 
 
 
 
 

Companies that rely on retailers to sell their products may have to pay a subsidy for retailers to carry a product that is unlikely to sell well due to its high price.

Other Questions Of This Category

A popular store that specializes in ready-to-assemble and affordable furniture is adding a high-end luxury leather sectional sofa to its product line. They are considering a price of $6379, which is…

You work for a company that makes luxury watches. The prices of watches in your product line could best be described as ranging from moderately to super expensive. Your team is considering whether or…

Your company manages small convenience stores located in hotel lobbies. In this arrangement, you operate in both the B2B environment with your hotel clients and the B2C market with your store…

Your company makes organic and all-natural cleaning products, and you've expanded into personal care items for babies and adults. You'd like to have the retailers you work with carry these new…

You work for an established company that makes woodwind instruments. Your product line of saxophones ranges from student to professional level horns. The vast majority of your buyers don't buy a more…

Imagine that you are on the pricing team at Move. It is August, a big month for back to school sales, and Cali has just made a second price cut on school uniforms. You did not respond to the first…

Retail clothing stores in Brazil are a rapidly growing market. A popular clothing store chain is trying to increase its profit by offering strategic discounts to its customers. Which of the following…

Your company has just created a product that tests multiple types of radiation emitted by hospital equipment. While this device is innovative and may replace several other devices that hospitals use,…

A large company that designs gaming computers is about to release a number of new products and product design features. Which of the following would most likely be considered a possible price…

You and some fellow graphic designers have created software that helps people create infographics using a series of templates and suggested layouts. You have had a limited release, and you are still…

The owners of a coffee shop are reviewing their discounts and promotions. Which of the following discounts would cause the shop to lose the most margin due to customers with a higher willingness to…

In which of the following scenarios would a company best be able to use competitor pricing models?

Review: Your company manufactures jewelry and t-shirts related to popular movies and television shows. Your pricing team is reviewing current and recent changes to pricing and business practices.…

Two rival companies sell handmade hammocks in a seaside town. Every summer, they compete for the business of tourists by cutting or raising prices. Using your knowledge of the Prisoner's Dilemma,…

Imagine that you are on the pricing team at Move. It is August, a big month for back to school sales, and Cali has just made a second price cut on school uniforms. You did not respond to the first…