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5 Customers' need (what type of need it responds to)
-Objective performance needs (anything measurable, observable)... objective
- Hedonic(sensual pleasure)/esthetic (pleasure related to art music and literature).... subjective
3 Product Characteristic
- Core Quality : Quality of a hotel to let you sleep
- Features and styling : (Extra) Bells and whistles, decoration, Japanese styles
- Reputation and support services : Brand, credit card payment.
Expected Money Gain (Expected Value)
PAY 100THB to Play
H earn 300
T earn 0
E(money) = 0.5 * 200 + 0.5 * 100
= 100- 50
= 50
Wholesales A(us) :
Wholesales B(competitor) :
If order from B, place 1 month in advance.
If ..................... A, no need to place in advance.
Calculate from the perspective of retailers.
Expected demand = 90 shirts
( 120* 10*0.3) + (90*10*0.4) +(60*0.3*10)
1. How much we gonna sell to A
2.Expected profit if they order from B =
1200-900 =300(0.3) = 90
1800-900=900(0.4) = 360
1800-900=900(0.3) = 270
= 720 Profit
3...................................................................... A
900 Profit
Differentiating factor worth => 180/90 = 2 THB/shirt
4. You can come up with value of differentiating factors
--> Ref Value = 10
-->Advance order = +2THB
--> VTC = 12
Price 10-12 THB (11)
Net benefit = 1THB
Conclusion = A is much better
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