15.4 Discussion Questions and Activities

Discussion Questions

  1. What is the difference between leader pricing and a loss leader?
  2. Which pricing approaches do you feel work best long term?
  3. When is price discrimination legal?
  4. Which pricing strategies have you noticed when you shop?
  5. What new products have you purchased in the last two years that were priced using either a penetration or a skimming approach?

Activities

  1. In order to understand revenues and costs, get a two-liter bottle of soda, ten to twenty cups, and a bucket of ice. Fill each cup with ice and then fill it with soda. Assume each cup of soda sells for at least $1 and you paid $1 for the soda and $1 for the cups. How much profit can you make?
  2. Go to a fast-food restaurant for lunch. Figure out how much the price of a bundled meal is versus buying the items separately. Then decide if you think many consumers add a soda or fries because they feel like they’re getting a deal.

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