356. (p. 394) Angie owns a small company that markets high quality office supplies to businesses. Angie faces stiff competition from some much larger firms like Office Depot. Which of the following competitive strategies would probably work best for Angie? A. Keep costs as low as possible by offering a no frills approach with little or no extra services.B. Develop a skimming pricing strategy.C. Utilize a high-low approach to pricing with a higher break-even point.D. Focus on non-price competition by offering better service with customers and work on building good customer relationships.It is usually difficult for small firms to compete against larger firms solely on the basis of price. It is usually easy for larger firms to match price cuts, but much harder to match the image of a friendly responsive company that knows its customers on an individual basis. Achieving this type of relationship, and superior service, can allow small firms to charge high enough prices to prosper as the text illustrates with its example of Danny O'Neill's gourmet coffee company. AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 14-7Level of Learning 3: Application of principlesNickels - Chapter 14 #356Topic: Competitive Pricing 123
357. (p. 394-395) Operating in the southwestern states, Lancer Airlines hopes to avoid entering the price war that currently is taking place between several airlines on the east coast. The best strategy to avoid severe price competition is to: It is usually difficult for small firms to compete against larger firms solely on the basis of price. Non-price competition work much better. AACSB: Reflective ThinkingBlooms: ApplicationLearning Goal: 14-7Level of Learning 3: Application of principlesNickels - Chapter 14 #357Topic: Competitive Pricing 358. (p. 390) From a marketing management perspective, what is the meaning of a total product offer? What are the important elements in the total product offer of your college or university? A total product offer consists of everything that consumers evaluate when deciding whether to buy something.
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