Assignment:
Pricing-One of the 4 P's
Being up to date with current events is an important part of becoming a business professional. In marketing, it is part of an important responsibility to continuously scan the external environment for opportunities and threats. Execute the following steps to successfully complete this Discussion on the pricing component of the marketing mix:
Step 1: read the attached current invents article.
Step 2: Cover the following topics in your Discussion answer in essay format:
1. Discuss the key purpose of the article in relation to the pricing component of the Marketing Mix.
2. Identify two pricing concepts that you learned from reading this article.
3. From the perspective of a professional, what impact does the information on pricing in this article have on the marketplace?
4. From the perspective of a consumer, what impact might the pricing concepts in the article have on the buying decisions of consumers?
5. How might this information on pricing affect you personally?
Case: A research study at the Universität Bonn (Germany) found that consumers are willing to pay more for products that include the Fair Trade logo (see image of logo on left). The logo can be found on a range of products including bananas, coffee, chocolate, and wine. TheUniversität Bonn study found consumers were willing to pay 30% more when the product carried the Fair Trade logo.
In addition, they thought Fair Trade branded products tasted better. Another part of the study asked consumers to sample two pieces of chocolate and determine which tasted better. While the chocolates were identical, one included the Fair Trade logo. the logo alone caused consumers to report the chocolate tasted better. Read more at Science Daily, "Fair Trade Logo Boosts Consumer's willingness to pay" (August 27, 2015).
The Fair Trade logo appears to reduce consumer's price sensitivity. Review discussion of price sensitivity and explain how the Fair Trade logo example influences price sensitivity.