IIT 5 Micro or Macro Economic Affecting Decision Making in Pricing Discussion

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Review all classmates’ posts, and choose two to comment on. Try to select classmates who do not yet have feedback so that everyone receives feedback.
In your response to each classmate, please answer the following questions: 
If you were an economist advising the business manager for the company who is making the decision about pricing, what five (5) microeconomic and/or macroeconomic factors should the manager consider? Please just list the five factors.
What one microeconomic and/or macroeconomic factor is the most important decision about pricing strategy? Explain why. In the long-term? In the short-term?

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Discussion Board Post 1 B. Y
Module 3B – AMC
COLLAPSE
Discussion Questions:
Initial Post:
Choose a company to use for this discussion. The company can be a U.S. firm, or
a firm from any country that is easily researchable using Internet search
engines. You may use the same company that you have used in previous
discussions, or you may choose a different company.
Using the web, familiarize yourself with the company (review their website as well
as recent news about the company related to the company’s business operations,
market share, or overall profitability).
Identify the name of the firm, and provide a brief description of the goods and/or
services that the firm produces.
AMC Entertainment Holdings, Inc. is an American movie theater chain headquartered in
Leawood, Kansas, and the largest movie theater chain in the world. Founded in 1920,
AMC has the largest share of the U.S. theater market.
If you were a manager working for the company you researched, in what
circumstances would you use the following pricing strategies for that business?
Uniform pricing: In what circumstances would you use this strategy? Apply
specifically to the business you selected.
Friday and Saturday nights are peak movie sales times. I would use Uniform Pricing
strategy to increase ticket sales during non-peak times such as weekday afternoon
matinee showings.
First-degree price discrimination: In what circumstances would you use this
strategy? Apply specifically to the business you selected.
I would use this pricing strategy to adjust ticket prices at peak times, based on
geographic area. Consumers in Manhattan, NY will can, and will pay more for a movie
ticket than consumers in Harlem, NY.
Second-degree price discrimination: In what circumstances would you use this
strategy? Apply specifically to the business you selected.
I would use this strategy to increase sales at all times by offering a discount on multipacks of tickets. Full price for one ticket, 10% off of a five-pack of tickets, or 20% off of a
ten-pack of tickets.
Third-degree price discrimination: In what circumstances would you use this
strategy? Apply specifically to the business you selected.
I would use this strategy to increase sales to low-income customers by offering a 10%
discount on single ticket purchases to students and senior citizens.
Discussion Board Post 2 A. A
•
•
Identify the name of the firm, and provide a brief description of the goods and/or services that the
firm produces.
• T-Mobile is the brand name used by the mobile communications subsidiaries of the German
telecommunications company Deutsche Telekom AG. The brand is also active in the Czech
Republic (T-Mobile Czech Republic), the Netherlands (T-Mobile Netherlands), Poland (TMobile Polska), and the United States (T-Mobile US).
If you were a manager working for the company you researched, in what circumstances would you
use the following pricing strategies for that business?
•
•
•
•
Uniform pricing: In what circumstances would you use this strategy? Apply specifically to
the business you selected.
? Uniform pricing in the mobile & carrier business would be applicable for mobile
eqiupments (smart phone, hubs, etc) and for T-Mobile I would keep the pricing
uniform across the country to be able to market and commercialize nation wide
First-degree price discrimination: In what circumstances would you use this strategy?
Apply specifically to the business you selected.
? In the mobile & carrier business and working as manager for T-Mobile; I would set
the first degree pricing discrimination strategy for pre-paid customers who are not
looking for long term but pay as you go. It would make sense for me to have higher
pricing for this group of customers to get quick return on investment
Second-degree price discrimination: In what circumstances would you use this strategy?
Apply specifically to the business you selected.
? The second-degree price discrimination in my company (T-Mobile) would be for
customers who are on a contract and looking for long term partner for mobile
phone, carrier services and hotspot hubs. These would be specific to the carrier
plans for minutes, texts, internet bandwidth etc.
Third-degree price discrimination: In what circumstances would you use this strategy?
Apply specifically to the business you selected.
? The third-degree price discrimination would be to special group of customers like
seniors, veterans, students, etc. and the pricing tier would be discounted of from the
regular pricing for long term customer plans on talk time, text, internet bandwidth,
etc.

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