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Price
answer
the value paid for a product in a marketing exchange
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Methods for Competing Based on Price
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price competition and non-price competition
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Price Competition
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marketers emphasize price, and attempt to match or beat competitor's prices; usually standardized products
ex. gasoline companies
ex. gasoline companies
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Non-Price Competition
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marketers emphasize factors other than price to distinguish products such as features and looks, which makes it easier to establish brand loyalty
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Demand Curve
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graph of the quantity of products expected to be sold at various prices if other factors remain consistent
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Price Elasticity of Demand
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a measure of the sensitivity of demand to changes in prices
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Elastic Demand
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change in price = opposite change in total revenue
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Inelastic Demand
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change in price = parallel change in total revenue
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Fixed Cost
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cost that does not change based on units produced
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Variable Cost
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cost that does change based on units produced
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Factors Effecting Price
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-organizational and marketing objectives
-types of pricing objectives
-costs
-other marketing mix variables
-channel member expectations
-customer's interpretation and response
-competition
-legal and regulatory issues
-types of pricing objectives
-costs
-other marketing mix variables
-channel member expectations
-customer's interpretation and response
-competition
-legal and regulatory issues
question
Price-Conscious Customers
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strive to pay the lowest price
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Value-Conscious Customers
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focused on price and quality
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Prestige-Sensitive Customers
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focused on prominence and status
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