: Imagine you work for a large distributor and are currently negotiating a distribution deal with a company that manufactures skateboards. Which of the following is the most advantageous strategy for your company? View
: Review: Which of the following describes an incentive that could be used to resolve margin leakage in the cost to serve category of a margin waterfall? View
: You are an executive for a company that supplies raw materials for skyscrapers. You’re negotiating a long-term contract for reinforced concrete and steel rods, materials with the highest costs for skyscraper developers. Steel costs are also quite volatile. How might you price these materials in a way that is most advantageous for your company? View
: A video game company that charges $15 per year for a game subscription is thinking of increasing the subscription price to $25. The company believes that it will reduce its initial customer base by 30% with this subscription increase. They’ll only retain 30% of their customers in the second year and of those who stay, 60% will remain customers in their third year. Company data shows that it costs $5 each year to service a customer, and the discount rate is 10%. What is their 3-year CLV with the price increase? View
: Imagine you are an intern and have been invited to a meeting where two potential investment opportunities are being discussed. Project Avalon has an initial investment of $200,000, a return rate of 10%, and a revenue of $350,000. Project Green has an initial investment of $250,000, a return rate of 10%, and a revenue of $450,000. How would you expect the team to continue the comparison of the two companies? View
: You run a local catering business that specializes in catering large events as well as providing personal chef services for individual clients. You often have a significant increase in demand around the holidays, with more events and more elaborate pre-packaged holiday meal requests from clients. Which of the following criteria best describes this situation and helps you select a pricing strategy? View
: An indoor waterpark and hotel is often not fully booked once outdoor pools and waterparks open for the summer. How might the indoor waterpark face some risks if they use marginal cost pricing? View
: Your new company hasn’t done much to analyze customer lifetime value, but you are trying to convince your team that it is important. How would you explain the conclusions that can be drawn from these analyses? View
: You have direct marketing experience, and you’ve just joined a small startup magazine publishing company. How might you explain the significance of calculating the customer lifetime value (CLV) of the publishing company’s customers? View
: The leading brand of scissors decides to take advantage of back to school sales by increasing the manufacturing price they ask from retailers. How might a large chain of office supply retail stores react if they are motivated to increase their own profits? View
