Case Study #5: A new yoga studio has opened up in your town. Through research, they have found that only a tiny percentage of the population in your town has ever gone to a yoga class They have hired two teachers who charge 40 per class and pay rent on the studio at 1500 per month. The other studio in the area charges 10 a class or 100 per month for unlimited yoga.To encourage new customers they are sending out a Groupon offering ten classes for 39. __ discrimination Case Study #5: You have just created a new product that competes with The Cloud for storage - your name is Nebula. You create several pricing tiers in presenting this product to your business customers. The first tier is called The Enterprise Tier. For 1,000 a month, you will offer unlimited cloud storage - customers can store as much information as possible each month. There is No limit. Your second tier is called The Starship. For 200 a month, you will offer customers 750 gigabytes of storage. Name your pricing strategy: Case Study #7: You develop a new self-cleaning toilet.Production costs are 200 Fixed costs add another 50 You want to make 45 per toilet. So you decide to sell the toilet for 295. Pricing strategy: You soon realize that customers don't understand how this toilet works You hold focus groups and surveys to discover that customers just want a sanitary toilet.They want the lid always to be clean and no ring inside the toilet. You revamp your product and, through this information, realize that you can sell your toilet for around 1000. You price test it at Home Depot for 999 and find that you sell out. So then you price test at 1499 and still see sales going reasonably well. You then price it at 1999 and only sell one unit.You decide to keep it at 1499. Pricing Strategy: Ifter selling this self -cleaning toilet for two years, you decide to add a feature that allows customers to have ligh nder the rim that are motion sensor activated . Perfect at night. You want to be the first in the market to sell th ew add-on kit and want to stop competition from entering your arena You decide to offer it at an introductory rice of 99 The actual value of this new feature is over 200 You work with Home Depot to produce a uniqu isplay offering this introductory pricing for one month. icing Strategy:

Question

Case Study #5: A new yoga studio has opened up in your town. Through research, they have found that only a tiny percentage of the population in your town has ever gone to a yoga class They have hired two teachers who charge 40 per class and pay rent on the studio at 1500 per month. The other studio in the area charges 10 a class or 100 per month for unlimited yoga.To encourage new customers they are sending out a Groupon offering ten classes for 39. __ discrimination Case Study #5: You have just created a new product that competes with The Cloud for storage - your name is Nebula. You create several pricing tiers in presenting this product to your business customers. The first tier is called The Enterprise Tier. For 1,000 a month, you will offer unlimited cloud storage - customers can store as much information as possible each month. There is No limit. Your second tier is called The Starship. For 200 a month, you will offer customers 750 gigabytes of storage. Name your pricing strategy: Case Study #7: You develop a new self-cleaning toilet.Production costs are 200 Fixed costs add another 50 You want to make 45 per toilet. So you decide to sell the toilet for 295. Pricing strategy: You soon realize that customers don't understand how this toilet works You hold focus groups and surveys to discover that customers just want a sanitary toilet.They want the lid always to be clean and no ring inside the toilet. You revamp your product and, through this information, realize that you can sell your toilet for around 1000. You price test it at Home Depot for 999 and find that you sell out. So then you price test at 1499 and still see sales going reasonably well. You then price it at 1999 and only sell one unit.You decide to keep it at 1499. Pricing Strategy: Ifter selling this self -cleaning toilet for two years, you decide to add a feature that allows customers to have ligh nder the rim that are motion sensor activated . Perfect at night. You want to be the first in the market to sell th ew add-on kit and want to stop competition from entering your arena You decide to offer it at an introductory rice of 99 The actual value of this new feature is over 200 You work with Home Depot to produce a uniqu isplay offering this introductory pricing for one month. icing Strategy:

Answer 1

Case Study #5:The pricing strategy for the new yoga studio is a combination of penetration pricing and bundling. The studio offers a Groupon deal of ten classes for

40 per class and

10 a class or

1000 a month, which is a premium pricing strategy targeting large businesses that require extensive storage. The Starship Tier offers 750 gigabytes of storage for

200, and the fixed cost was

45 per toilet was achieved by setting the price at

1499, which is a skimming pricing strategy targeting early adopters who are willing to pay a premium for the innovative feature. The introduction of the new add-on kit at an introductory price of $99 is a promotional pricing strategy to generate buzz and encourage early adoption before the competition enters the market.

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