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You are a manager of a company with a single main competitor. How might you choose the best price point for your company?

Price in the plateau of elasticity.

Your product price should be very close to your competitor’s price.

Significantly undercut your competitor.

Price well above your competitor but offer incentives that will slightly lower your price.

Elasticity is highest at the price of your competitor, and pricing close to the existing price point tends to be the best strategy with one competitor in the market.

Which of these companies has the highest elasticity?

You are a manager of a company with two main competitors who have disparate price points. How might you choose the best price point for your company?

You have an intern who is helping your team. She asked about the difference between cost-plus pricing and target-cost pricing. How would you best describe the question that is answered by a…

REVIEW: You have an intern who is helping your team. She asked about the difference between cost-plus pricing and target-cost pricing. How would you best describe the question that is answered…

A popular high-end reusable water bottle company decides to release a lower-priced and less designer version of their product, which will be sold exclusively at a big box retailer. How might…

Your company designed an ergonomic snow shovel that costs $15 to make. Your company wants to earn a 20% margin, and competitors are pricing comparable snow shovels at $17. Using the…

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?

You own a stationery shop, and you've been struggling with pricing decisions. You acquire some items in your store and find those are easier to price because you can add a markup to the cost…

You've just been hired to help a European furniture firm with pricing decisions as it expands to an international market. How would you explain your strategy to your new colleagues?

You are responsible for negotiating a contract to supply materials to build steel hulls and other parts for a large fleet of submarines. Why might you negotiate a contract with index-based pricing?

You've been asked to serve on a committee researching your company's competition for a potential new product. Which question might the committee be most likely to examine using the competitor…

You are a manager for a small chain of power sport product stores. You and some colleagues have gathered data on motorcycle prices and sales for the past quarter. How will calculating price…

Calculate the income elasticity of rib eye steaks using the data output below. Your team is gathering to discuss and better understand the income elasticity analysis. How would you explain the…

Your company is about to release new models of washers and dryers with significantly enhanced features. How might they use an auction pricing mechanism to sell as many of the current models as…

Review: Your company is about to release new models of washers and dryers with significantly enhanced features. How might they use an auction pricing mechanism to sell as many of the current…