Topic 1

Pricing strategy associated with services is typically more complex than the pricing of tangible goods. As a consumer, what pricing issues do you consider when purchasing services? How difficult is it to compare prices among competing services, or to determine the complete price of the service before purchase? What could service providers do to solve this issue? What are some concrete ways to establish value for service offering and to differentiate from the competition?

Review the steps in the AIDA model.

In what ways has promotion affected you in various stages of this model? Does promotion affect you differently based on the type of product in question? Does the price of the product (low versus high) make a difference in how promotion can affect your choices? Explain.

Topic 2

Locate a product offered by a manufacturer using a dual distribution approach. Are there differences between the consumers targeted by each channel? How do the purchase experiences differ? In the end, why would a customer buy directly from a manufacturer if the prices are higher?

Visit the Cents Off website: http://www.centsoff.com/ and browse the available coupons and read the FAQs.

What are the benefits of the Cents Off service for advertisers and consumers?

If you were a manufacturer that issues coupons, what factors would favor using the Cents Off website for distribution rather than the traditional Sunday newspaper insert?