Question

Price Adjustments This activity is important because as marketing managers set final prices, they start with the list (quoted) price and then make price adjustments to this price as they determine the final price. Wholesalers adjust the list price charged to retailers in the same way that retailers adjust the list price charged to consumers. The goal of this exercise is to identify examples of the three main types of special price adjustments: discounts, allowances, and geographical adjustments.Classify each price adjustment strategy as a discount, allowance, or geographical adjustment.1. To encourage Walmart to stock and carry pool chemicals as early as February, hth Pool Supplies offers Walmart a reduced pallet price on all of its chlorine and shock products for orders delivered before February 15.2. In many global trade transactions, the manufacturer prices the product at the point the producti loaded for shipping. The buyer has the ability to choose the method of shipping and must cover all shipping and handling costs. 3. Raquel has been married almost 20 years and desires a bigger engagement diamond ring. Since her initial diamond was purchased at Jareds, she is able to trade in her old ring and receive credit for its initial retail price toward the purchase of her new ring.4. Nike charges consumers $18 for a three-pack of Men's Dri-FIT crew socks and $24 for a six- pack of Men's Dri-Fit crew socks. When Joshua compared prices on the two packages of socks, he decided to purchase the six-pack since he was saving $2 per pair.5. To get Safeways to feature Capri Sun Juice Drink in a front-of-store feature. Capri Sun offered Safeway a free case of product for every 15 cases it ordered for the display.6. Amaz on offers its Prime members free two-day shipping with their Prime membership on ardless of where the customer lives.

Answer 1

Answer:

1. Discount

2. Geographical adjustments

3. Allowance

4. Discount

5. Allowance

6. Discount

Explanation:

1. Discount for early purchase and delivery order of chlorine and shock products

2. Geographical adjustment of price, due to shipping and handling costs

3. Allowance given to Raquel for the old ring; to help/encourage her purchase a new one (from the store)

4. Discount on the price or cost of purchase, for customers (like Joshua) who would buy more socks at a go

5. Allowance Capri Sun gives to Safeways Store, for every 15 cases of Capri Sun ordered and displayed in front of the store

6. Discount incentive/bonus Amazon is offering its Prime members. Take note of the nomenclature "Prime members". These are customers who make frequent orders or order a lot of products. Amazon is herefore offering a discount.

NOTE:

- A discount is offered to reduce the cost of purchase - which could be direct or indirect - while an allowance is given to encourage a business deal; as in numbers 3 and 5.