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h arketers onen use promoions ana aiscounts to seu proaucts. Inis means tnat customers ornen ao not pay tne list pice ror a proauct Marketers

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h arketers onen use promoions ana aiscounts to seu proaucts. Inis means tnat customers ornen ao not pay tne list pice ror a proauct Marketers use tne Price vvaternan pproach to assess the causes of the gap between a product's list price and the actual net price paid by consumers n this exercise, you are a manager who would like to construct a Price Waterfall for four different products. Iit is important to understand that there a many different ways to calculate a Price Waterfall, the correct way is based on the particular discounts for a product as well as how the data about the discounts is collected Click the icon to view the relevant promotional terms to calculate the Price waterfall in this particular scenario Click the icon to view the data for each product which product has the greatest % of total price reductions? 1 with the Price Waterfall % of % (Round to two decmal places ) Enter your answer in the answer box and then click Check Answer List price- The price of a product before all discounts or allowances. Dealer discounts The % discount a dealer offers off of the list price for a product. Cash discount An additional $ amount taken off the list price. In this scenario, it is applied after the deal discount is applied Mail-in Rebate- Netpncn puc y s ment therebte ofe (not al urchases actualy engee in the mal in rebotes Price Waterfall %-(Net Price), (List Price). Price Waterfall The reduction of the of the price actually paid by consumers, on average. List Price Dealer Discount Cash Discount Mail-in Rebate % Customers who Redeem Mail-in Rebate Product A $1,200 10% $40 $40 60% Product B $1,100 20% $40 $50 Product C $1,000 10% $30 $25 90% Product D $1,000 10% $40 $45 60% 60%

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