1. Betty drove three hours in one-hundred degree heat. Explain if this fact has any bearing on whether or not the dealer must perform in accordance with the published advertisement. No, the details of what Betty endured during her three hour drive in the heat has no merit on whether or not Rally Motors is obligated to perform a duty to sell a vehicle to Betty in accordance of their advertisement of a truck in the newspaper. Many businesses uses newspapers for advertisements which are promotional sales pitch such as the one used by Rally Motors, portrayed in the video to entice customers, but they are not precise methods of an offer to a customer.
The common difference is 3. 4. 1, −1, 1, −1, … SOLUTION: Since the ratios are constant, the sequence is geometric. The common ratio is –1. Find the next three terms in each geometric sequence.
I priced my high end Mercedes line accidentally at the price I had planned for my mainstream Workhorse line and vice-versa. I did not look closely enough at my pro forma cash flow or income statements to recognize the forecasted loss and as a result did not dig deep enough to see the reasons and to make the adjustments in pricing. I was overly focused on cash at that point to fund production capacity. I discovered the error when evaluating second quarter actuals. Going into third quarter planning, I looked at the pro forma cash flow and income statements to determine that my cash balances would not require any emergency borrowing while allowing me to expand production levels to meet or exceed my forecasted sales.
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
• Competitors like Marvel are wooing customers with low cost per click-through • Condition-specific websites like cholesterol.com has a better chance of converting a visitor to a customer. • Setting a price competitive to Marvel’s would drop MedNet’s revenue by 80% • Since advertisements are the only source of revenue, MedNet’s has to rethink their revenue generation strategy to sustain their business. • It is considered as a product problem because they may have to change the value proposition Note that technology is fragmenting the market and disrupting the business model What are the decision options? • Charging for the content, treating site visitors as patients. • Extend coverage of alternative health information • Develop and manage corporate websites What does he/she need to know to make a decision?
There is a saying that goes “don’t judge a book by its cover” but that’s exactly what consumers do. By the time thy use it they don’t they might not like the product and then move on to the next popular one. When an item or service is advertised it is sometimes played over and over maybe 10 or more times on one channel. This might make people tired of watching the commercial then when they go shopping they remember that that is the product I dislike watching the advertisement of and not buy it. Now when you rarely watch a commercial and maybe add humor or sorrow in an advertisement they say wow I remember that commercial it was funny or it was sad so they get it just because they remember it.
Many customers are shopping at lower priced stores because the economy is not allowing them to spend extra money. At these lower priced stores there are lower quality products. The consumer then has to make the decision on whether or not to spend the extra money to purchase the higher quality product with the higher price or the lower quality product with the lower price. Going along these lines, some customers will pay any price to have the name brand that they like. Many different stores offer the same name brand and you have to make sure your store offers the lowest price.
To satisfy the customer, Zappos never outsourced their call center, which means they do not work from a script. Their telemarketers often suggest customers to order more than one size, because they have free shipping in both directions. They even recommend competitor’s shop when they do not have a product that the customer wants. Zappos also uses a computer system called ‘Genghis’ so that the customers do not have to waste much time. It seems not a good service management skill for the company, but customer can really say ‘wow’ when they get a service from Zappos.
Throughout the article, the author says “The shoplifter creates a third choice of her own: she takes the products she has been conditioned to desire without paying for them… Shoplifting is the most effective protest against all … modern corporations” (Ex-workers Pg. 2). The purpose of this article and its use of logos is to inform the reader of the how the big corporations are cheating them out of their money and how they can “stick it” to them. Ethos, pathos, and logos are all rhetorical strategies that are used to inform and convince the reader of the continuing problem of big corporations cheating people out of their hard earned money. The logic and the papers emotional pull all contribute to the credibility of the author and what she has to say.
Essay 3 When businesses find ways to internalize externalities they can make more money. Discuss why shopping malls charge a low price per square meter to department stores like Galeria Kaufhof, a medium price to stores like H& M, and a high price per square meter to jewelry stores and food vendors. “Externalities are the costs or benefits that affect people who are not directly involved in the production or consumption of a good or a service.” 1Thus, externalities are not limited to the parties participating in the market i.e. to producers and consumers but also affect other people in the society. Externalities cause deadweight loss which can lead to market failure.