Market-Based Management 6th Edition by Roger Best

Exercise 16

The four interactive marketing performance tools and the application exercises outlined here will add to your understanding of value-based pricing, pricing strategies, price elasticity and break-even analysis. To access the tools, go to www.MBM-BEST.com. For the questions, you can enter the data presented to obtain the answers. You may also enter other data to see the results, and you can save your work. The figure numbers in parentheses are related examples in Chapter 8, but the lettered instructions pertain to the online exercises.
Performance-Based Value Pricing (Figures 8-11 and 8-12)
A. Replace the existing data with two car performance factors each with three levels of performance (e.g. 20 MPG, 25 MPG, and 30 MPG) and a price factor with three price levels (e.g. $20,000, $25,000 and $30,000). Then rank the nine alternatives from 1 (most preferred) to 9 (least preferred) and interpret the performance and price curves.
B. Input the product positioning (position on each performance factor and price) for your company auto and competing auto. Interpret the value index for each automobile and how each might influence market share.