Bill and Farrah have been recently hired by Superior Stereo Systems
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Course
HBO Small Business en Ondernemerschap
Institution
HBO Small Business En Ondernemerschap
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge
manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two
product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker
technology. The Super V is revi...
Bill and Farrah have been recently hired by Superior Stereo Systems, a cutting-edge
manufacturer of stereo speakers. Both Bill and Farrah have been assigned to work on two
product teams, the Superior V, an existing product, and the Superior VI, a brand new speaker
technology. The Super V is reviewing the pricing strategy used to this point. Bill, a recent
graduate with a degree in economics, is insistent that they should price the speakers to maximize
profits. He explains, \"It is basic economics—companies price their products to maximize
products. There\'s no question—this is the strategy that we should take.\" Farrah, remembering
what she learned in her marketing courses, isn\'t so sure that Bill is on the right track. The
technical specifications of the Superior VI speakers have been worked out, but the team is
struggling with pricing. Some members of the group think that the speakers should be priced
higher than the Superior V, while others are arguing for a lower price.
1. In the past, the price for the Superior V has been slightly higher than similar products offered
by competitors. Why would a company use this strategy?
2. How might Superior benefit from using e-catalogs?
Solution
1. they want to max the profits. So, the higher you price something the more profits that you can
bring in.
2. not entirely positive, but I would assume that using an ecatolog would allow the business
students to reach a more diverse and broad audience.
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