University of Oxford Video Case Carmex on Pricing Discussion

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Carmex Video Case

Which of the four approaches to setting a price does Carmex use for its products? Should one approach be used exclusively?

Why do many Carmex product prices end in 9? What type of pricing is this called? What should happen to demand when this approach is used?

Should cost be a factor in Carmex’s prices? What do you think is a reasonable markup for Carmex and for its retailers?

Conduct an online search of lip balm products and compare the price of a Carmex product with three similar products from competitors. How do you think the competitors are setting their prices?

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