Price

goods. 2.Prices of related goods In this factor if a price of a good is lowered and/or falls a demand for complementary products usually goes up. Example: cake icing and cake mixes if one of these were to go on sale there will be more of a demand for the other. On the other side, if the price of goods rise but there are substitutes and these substitutes remain…

second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units declines as more units are consumed (Thomas & Maurice 2010). In addition, second degree price…

Question 1 Define ad explain using formulae, the term price elasticity of demand. Answer 1 Demand is price elastic if the change in price leads to a even larger proportion of change in demand; therefore price elasticity of demand will therefore be greater than 1. This is because goods that are inelastic have all these qualities or features They are expensive/luxury or costly goods, e.g. or latest smartphones or designer clothes. Goods with many substitutes or similar products have a…

According to the book Economic Logic (2014), monopoly power refers to the ability of an individual or firm to manage and maintain the market price of goods or services above the level that would prevail under competition. Therefore, it would appear that if two rival companies decided to merge, most of the competition would most likely be eradicated (Skousen, 2014). By eliminating or minimizing the competition, the merged companies would become more prominent than the rest of the market. For this…

Price Price, which is an enduring element of the original Ps of the marketing mix, may generally be perceived in terms of the specific monetary value that a customer attaches to goods and services (Kent & Omar 2003). Farahmand and Chatterjee (2008) conceptualise price within the auspices of the value assigned to something bought, sold or offered for sales, expressed in terms of monetary units. It also pertains to how buyers view a product’s price, as high, low or fair, which ultimately affects…

concept of quality=high price http://www.youtube.com/watch?v=yzRDEKyqIJs&feature=player_embedded Perceived-Value Pricing Many companies base their pricing strategy on customer’s perceived value. Value delivered must be value promised in their value proposition and customer must perceive other marketing mix constituents like advertising…

to balance the price and quality, though it is complicated to do the process. According to H. Basin (2016), balancing the price and quality is a challenge for all of them because pricing is a strong component that affect the decision making of every consumers. Therefore, each products must be provide for specific consumers. You need to think for your target market as well as the competition in…

Price skimming, also known as market skimming, is a product pricing strategy where then firm charges a high initial price when introducing a product. With time, as the demand of customers is satisfied, the firm lowers its price a bit attracting those who are more price sensitive. This strategy is useful when there are enough customers who are willing to buy the product at a high price, when the high price keeps competitors from entering the market, lowering the price won’t have a huge impact on…

Introduction It can be easily expected from a company to offer a static price for their goods and services, but how does static pricing maximize profits? Currently, companies who make sales online are able to collect data on their current and potential customers regarding their demographics and track their search and purchase history. With the collected data, companies can produce a price that may match the dollar value of certain customers – this is called Dynamic Pricing. Dynamic Pricing is…

3. The Functioning of Bordeaux’s Market place To analyse price dynamics in a given market requires a description of the market, of which these prices are the consequence. The market place of Bordeaux is the common name for a complex system in charge of the trade of Bordeaux’s fine wines. It comprises several stages during which each actor has its attributed role. We have divided the relevant actors of this system in four main professions, namely the producers, the brokers, the traders and the…