Business Research Project : The Market There Are A Variety Of Consumers That Offer Similar Products
In todays’ market there are a variety of consumers that offer similar products. Organizations must think of ways to be more innovative in order to make their product stand out from other organizations that cell similar products. One of the best ways organizations of been able achieve the ability of standing out from its competitors is through pricing. Pricing strategies allow organizations to look at variety of factors, including the type of consumers that may be purchasing their products. If a business were to set up in in a more rural area and decided to charge high prices it may not be successful due to that fact that consumers are more conscience about spending money. Other business may not run into these issues because they may sell products that consumers cannot get anywhere else. A case like this would place an abundant amount of pressure on an organization to provide the best services possible when it comes to cost and meeting consumer’s needs.
In a perfect competition structure there are a large number of firms that provide similar goods and services to a large variety of consumers. In a perfect competition market there are no barriers which is results in a zero economic profit for the average competitive firm (Samuelson & Marks, 2015). Standardization is extremely important in a perfect competition structure. All firms are aware of competing prices because firms are expect to sell and produce…