BUS051 HW12

BUS051 HW12 - Sharon Ng Professor Henderson BUS051 15 July...

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Sharon Ng Professor Henderson BUS051 15 July 2011 Lesson 12 Homework Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting edge manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker technology. The Superior V team is reviewing the pricing strategy used to this point. Bill, a recent graduate with a degree in economics, is insistent that they should price the speakers to maximize profits. He explains, "Farrah, it's basic economics-companies price their products to maximize products. There's no question-this is the strategy that we should take. " Farrah, remembering what she learned in her marketing courses, isn't so sure that Bill is on the right track. The technical specifications of the Superior VI speakers have been worked out, but the team is struggling with pricing. Some members of the group think that the speakers should be priced higher than the Superior V, while others are arguing for a lower price. 1. Farrah begins by explaining why Superior Stereo Systems might not want to set prices for the
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This note was uploaded on 08/30/2011 for the course BUS 51 taught by Professor Henderson during the Summer '11 term at West Valley.

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BUS051 HW12 - Sharon Ng Professor Henderson BUS051 15 July...

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