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Mike is pricing a new couch. This couch is higher-quality and expected to last longer than your traditional couch. Mike prices the couch high because he knows that consumers anticipate paying more for longer-lasting products. What stage of the pricing process is Mike currently at?a. choosing a basis for setting pricesb. evaluating competitors' pricesc. assessing the target market's evaluation of priced. developing pricing objectivese. determining the final pricesam has a dilemma. He works for a chocolate company and the price of chocolate is going up. The most logical solution would be to raise the price. However, Sam knows from his history in the business that their loyal customers would not look favorably on a price increase. For customers, candy bars are one of those items where the price rarely changes. Sam's firm has sold its candy bars for $0.99 for the past two decades.
Sam feels that the next best solution to absorbing the extra costs is to make the candy bars slightly smaller without lowering the price. Sam's company is most likely using which of the following pricing strategies?Scenario 20.2Malcolm has decided that he wants to open up his own law practice. The time has come to establish prices for his services. Due to his extensive experience and legal background, he believes that his fees should not relate directly to the time or effort spent on specific cases.Refer to Scenario 20.2. Now that Malcolm has chosen the pricing strategy he wants to use, what is his next step?Scenario 20.1Bert’s company is about to release a new electronics product. The electronics product is estimated to have a short life cycle before it is replaced by an upgraded one. The company would like to recover the capital spent to produce the product. It therefore decides to charge the highest possible price for the product upon release. Bert’s firm recognizes this might provide an advantage to competitors who may release the product at a lower price, but it believes customers will feel that the higher price signals higher quality.Refer to Scenario 20.1. What type of pricing strategy is Bert's company using for this product?