Advertising Ch 14

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Performance

When buying info technology and related providers, think about the usage of modular contracting to scale back program risk (see 39.103). Performance-based acquisition strategies must be used to the maximum extent practicable, if the contract or order is for companies (see 37.102 and subpart 37.6). In common, the contracting officer does not synopsize orders beneath indefinite-delivery contracts; except see 16.505 and , and sixteen.505. The mixture of resources a contractor should have to carry out expected task or delivery order necessities. The contract shall state, if possible, the utmost restrict of the contractor’s obligation to deliver and the Government’s obligation to order. The contract may specify most or minimal quantities that the Government may order underneath every individual order and the maximum that it could order throughout a specified period of time.

Pricing designed to have a optimistic psychological impact. For example, there are often benefits to promoting a product at $3.ninety five or $three.ninety nine, somewhat than $4.00. If the value of a product is $one hundred and the company costs it at $ninety nine, then it’s using the psychological strategy of simply-below pricing. In most customers’ minds, $99 gives the look of being considerably lower than $one hundred. A minor distinction in pricing can make a giant distinction in sales. The firm that succeeds to find acceptable psychological worth factors can improve gross sales and maximize income.

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