: You own a market and campground supply shop just outside a very popular camping destination. You are planning a sale for an upcoming summer holiday weekend that will be very busy. Which of the following types of discounts or price reductions would customers most likely prefer? View
: A catering company asks customers to pay for their events in two payments, with the second payment due six weeks prior to the event date. Using your knowledge of consumer price perceptions, why might customers prefer to pay the balance in advance? View
: A fitness center has members sign up for recurring monthly dues payments, and they don’t send monthly payment reminders or give members notice when their membership is extending an additional year. Using your knowledge of mental accounting, how would you best explain the fitness center’s strategy? View
: Imagine you work for FitStyle, a company that makes stylish and affordable athletic shoes. Your team needs to price the newest running shoe. Which of the following offers would customers be likely to prefer? View
: A karate school for youth and adults has just conducted a client survey after its successful second year of business. Some customers noted that costs increased significantly in the second year. Owners are puzzled because cost increases between the first and second year were intentionally quite small. View
: Review: Take another look at the conjoint analysis output data on golf balls. Which of these best describe the product customers would prefer between a High Flyer ball that travels 15 yards farther than the average ball and costs $6.99 per pack and a Magnum Force ball that travels 10 yards farther than the average ball and costs $4.99? View
: Imagine you are on a team responsible for pricing blenders. Your current product lineup includes two blenders with distinct features: View
: A children’s gym and activity center has members sign up for recurring monthly dues payments, and they don’t send monthly payment reminders or give members a reminder that their membership is rolling into another month. Using your knowledge of mental accounting, how would you best explain the center’s strategy? View
: Imagine you work for Glow, a company that sells glow in the dark products such as glow sticks, wands, and accessories. Your team needs to price a new glow wedding package. Which of the following offers would customers be likely to prefer? View
: Your company used to charge $120 for a graphic calculator but offered a $20 rebate. For back-to-school promotions this year, your team decided to sell the same calculator for $100. Your team is shocked that sales went down. How could you use your knowledge of mental accounting to explain a possible cause for the reduction in sales? View
