Aras Design and Multimedia Centre (ADMC): it’s pricing strategy for video internet market training

2016 ◽  
Vol 6 (3) ◽  
pp. 1-11
Author(s):  
Rohaida Basiruddin ◽  
Siti Uzairiah Mohd. Tobi ◽  
Farzana Quoquab
Keyword(s):  
Marketing Strategy ◽  
Early Years ◽  
Pricing Strategy ◽  
Small Scale ◽  
Basic Training ◽  
Managerial Accounting ◽  
Content Type ◽  
Income Statement ◽  
Cost Behavior ◽  
The Cost

Subject area Managerial Accounting, Strategic Marketing. More specifically, cost behavior, cost estimation, cost prediction, cost-volume-profit (CVP) analysis, contribution income statement and pricing/promotional strategy. Study level/applicability This case is suitable to be used in advanced undergraduate level. Case overview This case demonstrates the issues relating to pricing strategy of “Video Internet Marketing Training”. Diyana Tahir and her husband, Abdul Rahim Abdul Shukor, established Aras Design & Multimedia Centre (ADMC) on January 17, 2009. The main office was located at Kuala Lumpur. Diyana was a well-known name in the field of internet video marketing training. In its early years, ADMC’s operation was limited to providing printing and graphic design services and offering printing materials for photocopy. However, with the passage of time, the company began to expand its services and offerings. At the beginning of 2010, ADMC offered editing facilities and services for video and multimedia in addition to its core services. As a unique marketing strategy, Diyana offered RM30 as the basic training fee for each participant, which was equivalent to RM470 value offered. In this way, she attracted customers to take part in further advanced level training that was conducted by ADMC. However, she felt that the number of participant to take advanced training was not satisfactory. She thought that it happened perhaps due to the fact that the participants were not much committed to the course since it was offered at a nominal price. Furthermore, she realized that the cost of providing such training had risen in the past six months. Currently, ADMC suffered losses in three consecutive months, and they really needed enough cash to sustain. As such, Diyana was thinking to reconsider the offered course fees whether to increase it. She was in a rush to make a decision to propose the new course fee in the monthly meeting with management committee at the end of April 2013. Expected learning outcomes Using this case, students can learn how a small-scale company can strategize its pricing strategy to survive in the highly competitive online market. The objectives of using this case are as follows: to help students in understanding the interrelationships between CVP in organization that can be used for future planning and decision-making; to be able to identify the cost structure of the basic training course (e.g. fixed and variable costs), determine the contribution margin, break-even point and prepare the contribution income statement that highlighting cost behavior; to help students to think critically while setting the price for the offered services; to develop students’ ability in analyzing the existing situation to come up with a viable and effective solution; to assist students in taking the right move in a right time; to broaden students’ views and understanding in considering the monetary aspect along with the human aspect in formulating an effective marketing strategy; to develop students’ understanding of the way to retain and attract customers through innovative pricing strategy; and to make students aware that innovation is the key to business success. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject codes CSS 1: Accounting and Finance.

Factors explaining a cost-based pricing essence

2019 ◽  
Vol 34 (8) ◽  
pp. 1850-1865
Author(s):  
Juliana Ventura Amaral ◽  
Reinaldo Guerreiro
Keyword(s):  
Design Methodology ◽  
Empirical Studies ◽  
Pricing Strategy ◽  
Company Size ◽  
Price Setting ◽  
Marketing Theory ◽  
Content Type ◽  
Industrial Companies ◽  
Five Factors ◽  
The Cost

Purpose Empirical studies have found that cost-based pricing remains dominant in pricing practice and suggest that practice conflicts with marketing theory, which recommends value-based prices. However, empirical studies have yet to examine whether cost-plus formulas represent the pricing approach or essence. Design/methodology/approach This study aims to address the factors that explain price setting whereby the cost-plus formula is not just the pricing approach but also the pricing essence. This examination is grounded in a survey conducted on 380 Brazilian industrial companies. Findings The results show that, for price-makers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, company size and differentiation), but it is negatively related to one factor (premium pricing strategy). For price-takers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, coercive isomorphism and use of full costs), but it is negatively related to five factors (one obstacle to deploying value-based pricing, company size, competitors’ ability to copy, normative isomorphism and experience). Originality/value The key contribution of this paper is demonstrating that cost-plus formulas do not go against the incorporation of competitors and value information. This study reveals that it is possible to set prices based on either value or competitors’ prices while simultaneously preserving the simplicity of the cost-plus formulas. Via the margin, firms may connect costs to information about competition and value. The authors also demonstrate the drawbacks of not segregating companies into price-makers and price-takers and an excessive focus on the pricing approach at the expense of pricing essence.

Transaction-based lending and accrual quality

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Gray ◽  
Arjan Premti
Keyword(s):  
Earnings Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Cost Of Debt ◽  
Accrual Quality ◽  
Content Type ◽  
Income Statement ◽  
Prior Literature ◽  
The Cost

PurposeThis study examines how lenders modify their behavior and their use of traditional, transaction-based lending models in credit decisions when faced with low earnings quality.Design/methodology/approachTo measure the earnings quality, following Bharath, Sunder and Sunder (2008), the authors use three measures of accrual quality and combine them into a simple parsimonious measure of accrual quality. Subsequently, the authors apply the incremental R-square approach used by Kim and Kross (2005) to determine the degree to which lenders modify their reliance on financial statement ratios when faced with low accrual quality.FindingsConsistent with prior literature, this study shows that the cost of debt is higher when accrual quality is low. In addition, this study extends prior literature by showing that lenders decrease their reliance on income statement data to make credit decisions as accrual quality decreases.Originality/valueThis paper broadens existing literature on the pricing of information risk in capital markets by being the first to show that lenders modify their reliance on financial statement data when faced with low-quality accruals. In addition, this paper extends the findings of Billings and Morton (2002) and demonstrates to managers the futility of using accrual manipulations to obtain more favorable credit terms. Lastly, this paper aids regulators and standard setters who seek to improve the usefulness of financial statements by showing that creditors do not appear to be misled by reporting choices that lower the quality of accruals.

How to optimize the cost and time of the acquisitions process?

2015 ◽  
Vol 34 (2) ◽  
pp. 41-50 ◽  
Author(s):  
Kate-Riin Kont
Keyword(s):  
Relevant Literature ◽  
Optimization Methods ◽  
Activity Based Costing ◽  
University Libraries ◽  
New Developments ◽  
Content Type ◽  
Cost System ◽  
Cost Behavior ◽  
The Cost ◽  
Print Format

Purpose – The purpose of this paper is to focus on the history and new developments of the optimization and analysis of acquisitions costs. More specifically, the acquisition cost and time optimization methods studied concern primarily print format books. Though e-books have begun to be developed more and more, the print format books – both scientific books and textbooks – are still very important for university libraries and continue to pour into acquisition activities. Design/methodology/approach – The data used in this paper are based on a review of relevant literature to provide an overview of the different concepts of the budget allocation and cost accounting methods suitable for the optimizing cost and time of the acquisition process. Different methods are described via reviewing example studies. Findings – On the basis of the current study, it can be said that the acquisitions procedure is more labor-intensive than any other library procedure both historically and nowadays. Nonetheless, the routines of acquisitions have been fairly well fixed over the years and constantly have searched for new ways to reduce costs. The most popular methods to control the acquisitions budget have been centralized and cooperative acquisitions, using vendors for acquiring library materials, customer-based acquisitions, and price indexes. New costing methods described, like activity-based costing and time-driven activity-based costing methodologies seem both to be the best tools for understanding acquisitions cost behavior and for refining a cost system for university libraries. Originality/value – This paper raises a perspective in library acquisitions management that has not been dealt with before. Namely, it explores how the library materials selection moved from intrinsic wisdom of bookish librarians and “just in case” inventory model to “purchase by customer suggestion” model. In addition, how libraries moved from acting on the basis of guesses to examine the cost breakdown of the acquisitions-related activities in a library.

Netflix in India: expanding to success

2021 ◽  
Vol 11 (2) ◽  
pp. 1-31
Author(s):  
Lubna Nafees ◽  
Mokhalles Mehdi ◽  
Rakesh Gupta ◽  
Shalini Kalia ◽  
Sayan Banerjee ◽  
...  
Keyword(s):  
Marketing Strategy ◽  
Value Creation ◽  
Customer Value ◽  
Chief Executive ◽  
Marketing Mix ◽  
Pricing Strategy ◽  
Content Type ◽  
The Right ◽  
Over The Top ◽  
Digital Landscape

Learning outcomes After completing the case, students should be able to understand: the importance and uniqueness of the individual market and developing a suitable marketing strategy. The concept of value creation and learn the importance of developing the right value proposition to compete and succeed in a market. The target audience and how to create the right marketing mix. Competition in a digital landscape and the importance of developing an appropriate strategy to counter its rivals and position the brand effectively. Case overview/synopsis During his visit to India in December 2019, Netflix’s founder and chief executive officer Reed Hastings talked about a series of steps the company had taken in the recent past to successfully face stiff competition and move towards achieving its stated target of 100 million viewers. These steps involved significant changes in their marketing mix such as reworking their pricing, developing a rich portfolio of Indian content and building various partnerships. Since Netflix’s launch in India (December 2016), it faced fierce competition from players such as Hotstar and Amazon Prime, both of whom had developed a rich portfolio of Indian content and adopted a very aggressive pricing strategy thus, making these changes essential. At the time of their launch, Netflix had set a very ambitious target of gaining 100 million viewers within five years (by 2021) while adopting a premium pricing strategy and positioning themselves uniquely based on their international content. They quickly learned that they would have to reevaluate their approach if they wanted to achieve their target on time. The changes announced by Hastings were an effort in that direction. The moot question was whether these steps would help Netflix India reach its goal. This challenge was further compounded by an almost 40% hike in data tariffs by three major wireless carriers considering most Indians watched over-the-top media content on their mobile phones. Complexity academic level The case is designed for undergraduates, as well as for fundamental marketing courses in the Master of Business Administration and other graduate level programmes. It can be taught in the Principles of Marketing, Marketing Strategy and International Marketing courses. It is ideal for topics such as understanding the operation of a digital business in a new market, customer value creation and value drivers, brand and brand positioning, product promotion, strategies for business growth and expansion, fighting competition in a digital landscape. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

scholarly journals Choosing A University: Applying Student Experiences To Managerial Accounting Concepts

2011 ◽  
Vol 5 (5) ◽  
pp. 1
Author(s):  
Barbara Reider ◽  
Belva Jones ◽  
Barbara Chaney ◽  
Kristen Sohlberg
Keyword(s):  
Pacific Northwest ◽  
Public University ◽  
Student Experiences ◽  
Managerial Accounting ◽  
Fictional Character ◽  
Number Of Factors ◽  
The Pacific ◽  
University Selection ◽  
Cost Behavior ◽  
The Cost

This case allows students to apply their recent university-selection experience to managerial accounting concepts. For some students, the decision to attend a particular university is easy; for others, the number of factors to consider may appear overwhelming. We provide a realistic scenario for making this decision that focuses on both financial considerations and important qualitative aspects of college. Our goal is to provide students a concrete example that allows them to utilize their experience in making this decision with the cost concepts necessary in understanding managerial accounting. Our fictional character, Amy, is choosing between an in-state public university, an out-of-state public university, and a private college in the Pacific Northwest. Instructors can use this case to reinforce cost concepts, cost behavior, and relevant costs.

scholarly journals Small-scale private equity: demand versus supply

2020 ◽  
Vol 33 (2) ◽  
pp. 363-380
Author(s):  
Bruce Dwyer ◽  
Keith Duncan ◽  
Colette Southam
Keyword(s):  
Private Equity ◽  
Supply And Demand ◽  
Large Data ◽  
Market Liquidity ◽  
Structure Theory ◽  
Small Scale ◽  
Structured Interviews ◽  
Data Set ◽  
Content Type ◽  
The Cost

Purpose This paper aims to bridge the gap between theoretical dissertations on the demand and supply for equity by Australian small and medium-sized enterprises (SMEs) and the reality of the capital raising markets. Design/methodology/approach The mixed-methods approach includes questions integrated into a survey of 26,000 SMEs paired with semi-structured interviews with the CEOs or Chairs of the 15 Australian small-scale private equity (SSPE) firms. Findings Contrary to capital structure theory expectations, 46 per cent of Australian SMEs are interested in equity funding, despite a stated ability to acquire additional debt. The authors reveal a mismatch between supply and demand for SSPE with few SMEs able to meet private equity (PE) firms’ stringent investment criteria. Research limitations/implications The population of Australian SSPE firms is small and interviewee responses are qualitative and are not easily replicated. Practical implications To improve SSPE market liquidity, SMEs must overcome severe information asymmetry to demonstrate their quality and reduce the cost of due diligence for PE firms. One relatively easy step is for SMEs to voluntarily adopt auditable financial controls on SMEs similar to publicly traded firms. Originality/value Few studies focus on small firm equity, which is essential to economic growth and innovation. The authors use a large data set of Australian SMEs and unique informationally rich interview data on the population of Australian firms in SSPE, an industry known for its lack of transparency.

The cost-effectiveness of insulin analogs and regular insulin for diabetes control: a case study in Iran

2020 ◽  
Vol 33 (4/5) ◽  
pp. 323-331
Author(s):  
Mohsen pakdaman ◽  
Raheleh akbari ◽  
Hamid reza Dehghan ◽  
Asra Asgharzadeh ◽  
Mahdieh Namayandeh
Keyword(s):  
Cost Effectiveness ◽  
Cost Effective ◽  
Regular Insulin ◽  
Diabetes Control ◽  
Diabetic Patients ◽  
Insulin Analogs ◽  
Content Type ◽  
Patients With Diabetes ◽  
The Government ◽  
The Cost

PurposeFor years, traditional techniques have been used for diabetes treatment. There are two major types of insulin: insulin analogs and regular insulin. Insulin analogs are similar to regular insulin and lead to changes in pharmacokinetic and pharmacodynamic properties. The purpose of the present research was to determine the cost-effectiveness of insulin analogs versus regular insulin for diabetes control in Yazd Diabetes Center in 2017.Design/methodology/approachIn this descriptive–analytical research, the cost-effectiveness index was used to compare insulin analogs and regular insulin (pen/vial) for treatment of diabetes. Data were analyzed in the TreeAge Software and a decision tree was constructed. A 10% discount rate was used for ICER sensitivity analysis. Cost-effectiveness was examined from a provider's perspective.FindingsQALY was calculated to be 0.2 for diabetic patients using insulin analogs and 0.05 for those using regular insulin. The average cost was $3.228 for analog users and $1.826 for regular insulin users. An ICER of $0.093506/QALY was obtained. The present findings suggest that insulin analogs are more cost-effective than regular insulin.Originality/valueThis study was conducted using a cost-effectiveness analysis to evaluate insulin analogs versus regular insulin in controlling diabetes. The results of study are helpful to the government to allocate more resources to apply the cost-effective method of the treatment and to protect patients with diabetes from the high cost of treatment.

scholarly journals Analysis of Operational Efficiencies and Costs for Extracting Thinned Woods in Small-Scale Forestry, Nasunogahara Area, Tochigi Prefecture, Japan

2020 ◽  
Vol 3 (1) ◽  
pp. 61
Author(s):  
Kazuhiro Aruga
Keyword(s):  
Transportation Costs ◽  
The Other ◽  
Small Scale ◽  
Light Truck ◽  
Operation Costs ◽  
Other Hand ◽  
Light Trucks ◽  
The Cost ◽  
Manual Extraction ◽  
Truck Transportation

In this study, two operational methodologies to extract thinned woods were investigated in the Nasunogahara area, Tochigi Prefecture, Japan. Methodology one included manual extraction and light truck transportation. Methodology two included mini-forwarder forwarding and four-ton truck transportation. Furthermore, a newly introduced chipper was investigated. As a result, costs of manual extractions within 10 m and 20 m were JPY942/m3 and JPY1040/m3, respectively. On the other hand, the forwarding cost of the mini-forwarder was JPY499/m3, which was significantly lower than the cost of manual extractions. Transportation costs with light trucks and four-ton trucks were JPY7224/m3 and JPY1298/m3, respectively, with 28 km transportation distances. Chipping operation costs were JPY1036/m3 and JPY1160/m3 with three and two persons, respectively. Finally, the total costs of methodologies one and two from extraction within 20 m to chipping were estimated as JPY9300/m3 and JPY2833/m3, respectively, with 28 km transportation distances and three-person chipping operations (EUR1 = JPY126, as of 12 August 2020).

scholarly journals Comparison of LPWAN Technologies: Cost Structure and Scalability

2021 ◽  
Author(s):  
Mohammad Istiak Hossain ◽  
Jan I. Markendahl
Keyword(s):  
Communication Technology ◽  
Service Providers ◽  
Communication Technologies ◽  
Cost Structure ◽  
Small Scale ◽  
Area Network ◽  
Wide Area Network ◽  
Generic Framework ◽  
Cost Efficient ◽  
The Cost

AbstractSmall-scale commercial rollouts of Cellular-IoT (C-IoT) networks have started globally since last year. However, among the plethora of low power wide area network (LPWAN) technologies, the cost-effectiveness of C-IoT is not certain for IoT service providers, small and greenfield operators. Today, there is no known public framework for the feasibility analysis of IoT communication technologies. Hence, this paper first presents a generic framework to assess the cost structure of cellular and non-cellular LPWAN technologies. Then, we applied the framework in eight deployment scenarios to analyze the prospect of LPWAN technologies like Sigfox, LoRaWAN, NB-IoT, LTE-M, and EC-GSM. We consider the inter-technology interference impact on LoRaWAN and Sigfox scalability. Our results validate that a large rollout with a single technology is not cost-efficient. Also, our analysis suggests the rollout possibility of an IoT communication Technology may not be linear to cost-efficiency.

scholarly journals Evaluating the Economic Viability of Agricultural Pellets to Supplement the Current Global Wood Pellets Supply for Bioenergy Production

Energies ◽  
2021 ◽  
Vol 14 (8) ◽  
pp. 2263
Author(s):  
Mahmood Ebadian ◽  
Shahab Sokhansanj ◽  
David Lee ◽  
Alyssa Klein ◽  
Lawrence Townley-Smith
Keyword(s):  
Supply Chain ◽  
Western Europe ◽  
Small Scale ◽  
Economic Activities ◽  
Wood Pellets ◽  
Logistics System ◽  
Global Marketplace ◽  
Biomass Logistics ◽  
Production And Distribution ◽  
The Cost

In this study, an inter-continental agricultural pellet supply chain is modeled, and the production cost and price of agricultural pellets are estimated and compared against the recent cost and price of wood pellets in the global marketplace. The inter-continental supply chain is verified and validated using an integration of an interactive mapping application and a simulation platform. The integrated model is applied to a case study in which agricultural pellets are produced in six locations in Canada and shipped and discharged at the three major ports in Western Europe. The cost of agricultural pellets in the six locations is estimated to be in the range of EUR 92–95/tonne (CAD 138–142/tonne), which is comparable with the recent cost of wood pellets produced in small-scale pellet plants (EUR 99–109/tonne). The average agricultural pellet price shipped from the six plants to the three ports in Western Europe is estimated to be in a range of EUR 183–204 (CAD 274–305/tonne), 29–42% more expensive that the average recent price of wood pellets (EUR 143/tonne) at the same ports. There are several potential areas in the agricultural pellet supply chains that can reduce the pellet production and distribution costs in the mid and long terms, making them affordable supplement to the existing wood pellet markets. Potential economic activities generated by the production of pellets in farm communities can be significant. The generated annual revenue in the biomass logistics system in all six locations is estimated to be about CAD 21.80 million. In addition, the logistics equipment fleet needs 176 local operators with a potential annual income of CAD 2.18 million.

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