11.2. How does pricing affect a small firm’s image?Answer:11.6. Why do many small businesses use the...

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11.2. How does pricing affect a small firm’s image?Answer:11.6. Why do many small businesses use the manufacturer’s suggested retail price? What are the disadvantages of this technique?Answer:11.10. What is cost-plus pricing? Why do so many manufacturers use it? What are the disadvantages of using it?Answer:11.14. What advantages and disadvantages does offering trade credit provide to a small business?Answer:13.1. How has the Internet and e-commerce changed the ways companies do business?Answer:13.5.
	
Document Preview: 11.2. How does pricing affect a small firm’s image?Answer:11.6. Why do many small businesses use the manufacturer’s suggested retail price? What are the disadvantages of this technique?Answer:11.10. What is cost-plus pricing? Why do so many manufacturers use it? What are the disadvantages of using it?Answer:11.14. What advantages and disadvantages does offering trade credit provide to a small business?Answer:13.1. How has the Internet and e-commerce changed the ways companies do business?Answer:13.5. Explain the five basic approaches available to entrepreneurs for launching an e-commerce effort. What are the advantages, the disadvantages, and the costs associated with each one? Answer:13.9. Describe the techniques that are available to e-companies for tracking results from their Web sites. What advantages does each offer?  Answer:13.13. What are three specific things you can do to driver people to your website?Answer:

David · Accepted Answer

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11.2. How does pricing affect a small firm’s image? 
Answer: 
Pricing has been one of toughest decisions, which the small business owners are 
facing however this has also been one of essentials. Prices which are very high would hurt the 
sales of the company. Pricing products as well as services are very low, the general tendency 
within the start-up businesses would rob the organizations of the profits, thus threatening their 
long term success as well as leaving the consumers with the impression that their products as 
well as services have been of the inferior quality. Improper pricing is destroying the 
countless businesses. 
11.6. Why do many small businesses use the manufacturer’s suggested retail price? What are the 
disadvantages of this technique? 
Answer: 
Several manufacturers print the suggested retail prices on its products as well as they 
involve them on the invoices or in the wholesale catalogs. Owners of the smaller business 
regularly follow those suggested retail prices as doing that eliminates requirement towards 
making the pricing decision. There have also been drawbacks like following the prices 
established through different manufacturer can create issues for smaller firm like this may not 
take in consideration smaller cost structure as well as competitive situation of the firm.
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11.10. What is cost-plus pricing? Why do so many manufacturers use it? What are the 
disadvantages of using it? 
Answer: 
Much generally used pricing method for the manufacturers has been the cost-plus pricing. 
By using this technique, manufacturers establish the price composed about the direct materials, 
the direct labor, the factory overhead, selling as well as administrative costs, additionally the 
desired profit margin. Major benefit of cost-plus pricing technique has been their simplicity. But 
this may not encourage manufacturer for using their resources much efficiently. And, as the cost 
structures of manufacturers differ a lot, cost-plus pricing fails towards considering competition 
sufficiently. 
11.14.

11.2. How does pricing affect a small firm’s image?Answer:11.6. Why do many small businesses use the manufacturer’s suggested retail price? What are the disadvantages of this technique?Answer:11.10....

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