For Faculty Evaluation Use Only StratSim Frequently Asked Questions
The frequently asked questions are grouped into categories, in the following order. (Some of these are based in part on questions from Chris Moorman’s WEMBA Strategy class.) Pricing and Cost Finance Manufacturing and Inventory Tools, Research, and Customers Technology Upgrades and New Product Development Development Centers Dealership and Distribution Entering Decisions B2B Marketing Licensing Miscellaneous

PRICING AND COST
What is the expected price range? The expected price range reflects the beginning of the purchase process, when the customers say to themselves, “What price am I generally expecting/looking to pay for a vehicle?” Obviously, during the actual purchase process, customers prefer a lower price, but early in the process, they have a general sense of whether a vehicle is out of their price range, or else is priced so low that it won’t have the features they want. The customer uses the expected price range to determine the vehicles in her/his consideration set, along with vehicle class and size. In effect, expected price range is primarily a positioning issue before the actual buying process begins. How do you change the MSRP of a product? On the consumer marketing decision screen, click on the product, and then you'll be able to change the marketing mix decisions for that product. Beaut's MSRP is set up at $39,834, however its average retail price is $40,088. Is it technically possible for StratSim customers to pay more than the sticker price? Yes, it typically happens in one or more of the following circumstances: 1) Demand is high relative to supply, allowing dealers to mark up prices. 2) Dealer margins are tight on the vehicle and so they mark it up closer to industry standards for that product class. 3) Since dealers are independent businesses, they may look at market