Coke and pepsi battle it out



until 2004, pepsi was sold in the gulf, but notcoca-cola. today, pepsi is fighting to keep its dominant position in the middle east. coca-cola and pepsi have avoided a price war and have entered into a "display marketing" war. each copies theother's promotions and tries to do even better. coca-cola and pepsi are at each other's throats, and that's good news for everyone.

ame info,

april

8, 2004

describe the game that coca-cola and pepsico play in the middle east.

why is it "good news for everyone" in the middleeast?

coca-cola and pepsi are playing game.



a.

an advertising

b.

a research

c.

a price

d.

an efficient

the game good news for people in the middle east because

a.

is;

coca-cola and pepsi have a reputation for producing interesting and dynamic advertising campaigns

b.

is not;

coca-cola and pepsi will pass on their additional marketing costs to the consumers

c.

is not;

any game that an oligopoly plays always results in higher prices for the consumers

d.

is;

they have more information about the products and the increased promotions give the consumers deals they otherwise would not have experienced

Which of the following statements concerning an organization's strategy is true? a. cost accountants formulate strategy in an organization since they have more inputs about costs. b. businesses usually follow one of two broad strategies: offering a quality product at a high price, or offering a unique product or service priced lower than the competition. c. a good strategy will always overcome poor implementation. d. strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

The questions of economics address which of the following ? check all that apply

At a student café, there are equal numbers of two types of customers with the following values. the café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (i.e., she cannot price-discriminate). students with early classes students without early classes coffee 70 60 banana 51 101 the marginal cost of coffee is 10 and the marginal cost of a banana is 40. the café owner is considering three pricing strategies: 1. mixed bundling: price bundle of coffee and a banana for 161, or just a coffee for 70. 2. price separately: offer coffee at 60, price a banana at 101. 3. bundle only: coffee and a banana for 121. do not offer goods separately. assume that if the price of an item or bundle is no more than exactly equal to a student's willingness to pay, then the student will purchase the item or bundle. for simplicity, assume there is just one student with an early class, and one student without an early class. price strategy revenue from pricing strategy cost from pricing strategy profit from pricing strategy 1. mixed bundling $ $ $ 2. price separately $ $ $ 3. bundle only $ $ $ pricing strategy yields the highest profit for the café owner.