MGT301 GDB Spring 2011 idea Solution June 2011

[Vuhelper]

In product Mix Pricing Strategies five strategies are used. These are Product Line Pricing, Optional Product Pricing, Captive Product Pricing, By Product Pricing and Product Bundle Pricing. You are required to give only the name of pricing strategy from the below mentioned statements.



Company A has introduced 250 ml cold drink and 500 ml cold drink with different prices
Company B is an internet service provider which charges a fixed and some variable rates according to usage in a month.
Company C is dealing in processing petroleum product and introduced Vaseline in the market with low price.
Company D is dealing in car manufacturing and offered company fitted CNG in low price as compared to the market price of the CNG kit.




Important Instructions:



You are required to give answer in tabular format like:



Company A

?

Company B

?

Company C

?

Company D

?

[Vuhelper]

Strategy Description
Product line pricing Setting price steps between product line items
Optional-product pricing Pricing optional or accessory products sold with the main product
Captive-product pricing Pricing products that must be used with the main product
By-product pricing Pricing low-value by-products to get rid of them
Product bundle pricing Pricing bundles of products sold together

[Vuhelper]

n product Mix Pricing Strategies five strategies are used. These are Product Line Pricing, Optional Product Pricing, Captive Product Pricing, By Product Pricing and Product Bundle Pricing. You are required to give only the name of pricing strategy from the below mentioned statements.



1. Company A has introduced 250 ml cold drink and 500 ml cold drink with different prices
2. Company B is an internet service provider which charges a fixed and some variable rates according to usage in a month.
3. Company C is dealing in processing petroleum product and introduced Vaseline in the market with low price.
4. Company D is dealing in car manufacturing and offered company fitted CNG in low price as compared to the market price of the CNG kit.



Solution:

Company A: Product Line Pricing

Company B: Optional Product Pricing

Company C: By Product Pricing

Company D: Product Bundle Pricing