21 Nov Distribution Channels/Communication Mix/Pricing
12315Review the important themes within the sub questions of each bullet point. The sub questions are designed to get you thinking about some of the important issues. Your response should provide a succinct synthesis of the key themes in a way that articulates a clear point, position, or conclusion supported by research.
• Perceived value of a product is directly related to its perceived quality and inversely related to its price.
o Assuming that we keep the perceived quality constant, explain what would happen to the perceived value of the product if we increase its price.
o Explain what will happen if we decrease its price.
o Conversely, if we keep the price constant, explain what will happen to the product’s perceived value if we increase its perceived quality.
o Explain what will happen if we decrease its perceived quality.
Your initial posting should be the equivalent of 1.5 single-spaced pages (700 to 800 words) in length.
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