Every business is continually working towards growing its profits. Through profit maximization, businesses can find the best price levels to achieve its profitability goals. This method allows companies to set different product at prices that return maximum revenue and profitability. Profit maximizing prices are important because they have a positive long-run effect on profit, rather than markdowns, which create excitement but inevitably have a negative long term profit effect. In order to find this equilibrium price, a company must determine its consumer’s price elasticity or price sensitivity (Chapter 14 slides).
Effect of Brand Name on Quality Perception and preference. Introduction Recently, the consumer consciousness had raised and most of the consumers choose to purchase their familiar and favorable brand. Therefore, if businesses want to defeat their competitors, they have to make consumers love to buy their products and brands. Even though consumers are familiarize to the product they heard before and are willing to purchase the product, brand awareness is the most important factor to influence purchase decision. When consumers want to buy a product, and a brand name can come to their minds at once, it reflects that product has higher brand awareness.
However, BabbaCo’s business model is based on a strong network effect which falls to the winner-take-all industries. Therefore, upon weighing the pros and cons of the recommendations, BabbaCo. may want to consider the short-term strategy as the immediate action to increase repeat sales. They should validate their business model as soon as possible to scale their business to be the market leader through extending product lines and penetrating a widening market.
As also mentioned before, they rarely offer discounts. This further communicates their quality and enhances customer perception because, if it is the highest quality, it shouldn’t be discounted. Many discounts cheapen your overall brand and communicate that you need help selling your product. Lululemon maintains that their products are only for those that can afford to indulgence in the premiums of the
Both these employees have shown their innovative approach at work and more than efficient attitude. As for Humbolt, he suggested the best project for the company by acquisition of Schnapps Brand. While the project investment is under the limits of capital budgeting, it is also enticing in terms of profitability and diversity to approach the varied class of customers. On the other hand, it was Morin who designed the price war and was the lead advocate, is yet another deserving candidate to lead the
A strong brand will help an organization to differentiate the price from the rest and encourage their customers to pay for the intangible benefits they get from associating themselves with a brand that makes them appear cool fashionable, or clever. In addition, a brand provides a vital differentiator, especially when the basic product or service is widely
Even though the whole attitude of the end consumers’ is positive towards the Hugo Boss brand but the consumers fondness to buy the Hugo Boss brand appearing to be comparatively low down as the trend is being seen that the consumers are liking the other brands. Service Quality Service quality starts from customers. Quality is one of the major basis of their perceptions. Companies should focus on satisfying or exceeding the expectations of customers, as it is the most significant positioning tool that will attract clients. (Veljkovic,2006) Two Dimensions •
Proposal Focus Question: • “Does the youth of St. Mary’s DSG Pretoria know about competitive advertising and do they believe that it should be allowed in South Africa?” Market: • I would focus my research on competitive advertising in general. • Competitive advertising was an interest to me because I believe advertising in South Africa is not regarded by the majority of our citizens as having any real value to society. Therefore through primary and secondary research, I would like to confront the need for competitive advertising in South Africa and the benefits it would bring to the South African economy and consumer. What I find interesting in competitive advertising, is the type of techniques used to promote the product/service and appeal to the possible consumer. It is more interesting and has many benefits for the consumer.
Firstly, the relationship of product features and the promotion activities were studied on brand awareness, perceived quality and perceived value. Secondly, the effect of brand awareness, perceived quality and perceived value on brand image was assessed. Thirdly, the relationship of brand image on brand preference, brand loyalty and brand repurchase was examined. Fourthly, the effect of brand preference on brand loyalty and brand repurchase was assessed. Finally, the effect of brand loyalty on brand repurchase was