Author Question: Trudy owns a Dell laptop computer. She uses the computer in class and her classmates can see the ... (Read 148 times)

V@ndy87 · **on:** Jun 29, 2018

Trudy owns a Dell laptop computer. She uses the computer in class and her classmates can see the Dell logo when she uses her laptop. One of her classmates is looking to purchase a new laptop and asks Trudy her opinion of Dell computers. Trudy informs her classmate that she is satisfied with her laptop and recommends that her classmate purchases one, too. For Dell, Trudy is exhibiting some of the benefits of _____.
A) brand recognition
B) brand equity
C) brand insistence
D) brand loyalty
E) brand mark

Question 2

Explain differential pricing and then describe the four major types.

mbcrismon · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

Differential pricing means charging different prices to different buyers for the same quality and quantity of product. For differential pricing to be effective, the market must consist of multiple segments with different price sensitivities. Differential pricing can occur in several ways, including negotiated pricing, secondary-market pricing, periodic discounting, and random discounting.
Negotiated pricing occurs when the final price is established through bargaining between a seller and a customer. Negotiated pricing occurs in a number of industries and at all levels of distribution. Secondary-market pricing means setting one price for the primary target market and a different price for another market. Often the price charged in the secondary market is lower. However, when the costs of serving a secondary market are higher than normal, secondary-market customers may have to pay a higher price. Periodic discounting is the temporary reduction of prices on a patterned or systematic basis. Random discounting is employed to alleviate the problem of customers' knowing when discounting will occur, by reducing the prices temporarily on a nonsystematic basis.