Regulators in the European Union have charged Microsoft with illegally tying Internet Explorer (IE) to Windows and mandated that a version of Windows be offered stripped of IE. A news report suggested that when Microsoft launches Windows 7, it will charge a higher price for the IE-stripped version than the price for a full version that includes IE. Microsoft denied this report but announced that it would offer the full version of Windows 7 at a lower upgrade price.
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- 2. There are probably 20 or more brands of laundry detergent in the grocery store where your family shops, Make a list of different ways in which producers try to differentiate one detergent brand from Why can some brands have prices that are much higher than the price of others and still sell well?What are the typical orientation of the markets and audiences for new online media producers?Explain why have no competitors caught up with Apple? Do you think Apple can sustain its success with so few products? What would you ask Apple to design next and why?
- 10. How much should Frostee's Doggie Donuts charge to maximize its revenue? 11. What is the maximum revenue for the price you listed for Question 10? 12. How much should Frostee's Doggie Donuts charge to maximize its profit?4. Hundreds of music stores have been closing in the face of stagnant demand for CDs because of new competition by online music vendors. a. How would price competition from these new sources cause a retail store to close? b. In the long run, will CDs remain a viable product? If so, how?2. Some companies are considering using Goògle's Android operating system for their tablet PCs and netbooks. How would you expect Microsoft to react if Google succeeds in entering the market for desktop applications in this way?
- If you want to increase demand for your restaurantbut are unable to lower prices or increase advertising,what steps might you take?Todd used to run a newsstand, but he's out of the business now. Todd started by selling local newspapers on a street corner. In the winter he got cold, so he paid the city a fee of $500 for the right to build a 4' by 8' enclosed wooden newsstand on a busy corner. Soon he decided to sell magazines, chewing gum, and candy bars too. He began to stock foreignlanguage newspapers and paperback romance novels. Then he added hot pretzels and candy apples. When he tried to supply cut flowers, he had gone too far. The costs of his entire inventory could not be covered by his sales. He couldn't pay his bills and went out of business. Answer the following questions about Todd's experiences. 18. When he started his business, were most of Todd's costs fixed or variable? As he sold more items, were most of his costs fixed or variable?what issues do the onlinebusinesses face? How are they similar to offline competition? How are these issues resolved (market v. nonmarket) in the onlineand offline business?
- 1. Why and how do businesses segment their markets? Identify a product where you believe your own demographic is targeted as a primary customer. 2. How might the marketing strategy be different for a hotel targeting a business traveler versus family holiday travelers?Ilia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side of the street and a Shell station on the other side of the street. Although run by different companies, the two stations sell gasoline at the same price. a. The most likely reason that the price is the same is that _gas stations always make a profit, so they can charge any price they want. _drivers need gas and are willing to pay whatever price a gas station charges. _government regulation requires both gas stations to charge the same price. _consumers view gasoline from different gas stations as perfect substitutes. b. If one station increases its price, _it will be fined by the government. _it will sell more gasoline. _it will make a higher profit. _it will lose customers to the cheaper station across the street.1. Using the Extended Service Mix, critically evaluate how Netflix has been successful in providing a ‘World-Class Customer Service’ offering Globally.