Assessment Tool

Written Response Tasks .

Name: Jon Bryan N. Montejo Course code & descriptive title: Pricing Strategy.

Course & Year: BSBA-MM, 4th year Module No. & Inclusive week/s: Module 5-6,September 6-
September 20

Date Submitted: September 20, 2021 Grading Period: prelim. Mod. No. 5&6

Enrichment exercise 1.

1.) The optimal bidding strategy for an oral auction is:

Select one and explain: (10 points)

A. To size up your competition to determine how much to shade your bid.

B. To bid drop out when the bidding exceeds your true value.

- the optimal bidding strategy for an oral auction is to size up your competition to determine how much
to shade your bid because by hiding your real value you can determine when or where to drop your bid
when you already reach your true value.

2.) Considering the different tips and policies for improving a company's pricing strategy, do you think
consumers are more influenced by price, quality, loyalty or testimonials from other consumers? How
can the tips and policies help become competitive within the market? Explain and give examples. (20
points).

- i do think consumers is not only influenced by the price, quality and testimonials from other consumers
but also about their past experiences because some consumer purchase goods and services based on
their experiences. For example, a certain brand of sneaker releases a new version of shoes but the
consumer didn't purchase it yet because based on his or her experience the new version of shoes will
have a discount or less price after a certain period of time.

3.) The prices that people are willing to pay for goods and services mostly depend on:

A. The cost of producing the goods and services

B. The total utility derived from the goods and services

C. Whether the goods are legal, since the laws affect the position of both supply and demand curves

D. The availability of raw materials for producing the goods and services
E. The marginal utility derived from the goods and services.

Select the best answer and explain (15 points).

- The prices that people are willing to pay for goods and services mostly depend on the availability of
raw materials for producing the goods and services. It is simply because the more raw materials
available in the market, the more less expensive the product and services are and knowing that the raw
materials is rare in the area, the consumers are way more willing to pay more extra money on a certain
product or services because it is rare. For example. People is willing to pay more Money in buying a nike
Jordan shoe than a nornal pair of shoes because the consumer knows that the nike Jordan shoes is made
of authentic materials made in USA and because the materials are not available in the market here in
the Philippines, the cost of the shoes is way more expensive than the normal pair of shoes.