COMMERCE 1E03 Lecture Notes - Lecture 15: Category Killer, Direct Selling, Costco
23 Mar 2017
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Document Summary
Everyday low pricing (edlp) setting prices lower than competitors and not having sales. High-low pricing regular high prices but many sales. Bundling two or more products together and pricing them as a unit (ie. all inclusive resort w/ airfare) Initially low prices that allow for you to take a lot of the market share quickly. This is useful if the market is very price sensitive. If the low market price would be an effective market entry barrier. A higher price than usual in order to recoup research and development costs. Image and quality of the product must be high. After that price point is exhausted, the firm will lower the price. A business structure that reach from the point of product origin to the consumer with the purpose of moving products to their final consumption destination. Suppliers > manufacturers > wholesalers > retailers > consumers. Sell directly to the end user (buying a pumpkin from a farmer)
