COMMERCE 2MA3 Lecture Notes - Lecture 11: Leader Price, Geographical Pricing, Price Fixing

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2MA3
• Professor: Bharat L Sud

Document Summary

One-two punch-> if (cid:455)ou do(cid:374)"t ha(cid:448)e e(cid:374)ough (cid:272)usto(cid:373)e(cid:396)s tha(cid:374) (cid:272)o(cid:373)pa(cid:374)ies (cid:449)o(cid:374)"t (cid:271)e i(cid:374)te(cid:396)ested i(cid:374) putti(cid:374)g stuff o(cid:374) g(cid:396)oupo(cid:374) a(cid:374)d if (cid:374)ot e(cid:374)ough (cid:272)o(cid:373)pa(cid:374)ies o(cid:374) g(cid:396)oupo(cid:374) the(cid:374) (cid:272)usto(cid:373)e(cid:396)s (cid:449)o(cid:374)"t (cid:271)e i(cid:374)te(cid:396)ested. Groupon is based on idea that if a large quantity of people guarantee that they will buy then a company will sell their product at a discount. Deal-fatigue-> (cid:272)o(cid:373)pa(cid:374)(cid:455)"s se(cid:374)d so (cid:373)a(cid:374)(cid:455) e(cid:373)ails, et(cid:272). a(cid:271)out deals that people are getting sick of these notifications for deals. Co(cid:373)pa(cid:374)ies (cid:272)a(cid:374) (cid:272)usto(cid:373)ise the t(cid:455)pe of deals sho(cid:449)ed to (cid:272)usto(cid:373)e(cid:396)s (cid:271)ut (cid:449)h(cid:455) do(cid:374)"t the(cid:455) (cid:272)usto(cid:373)ize the amount you time you communicate to the customer. P(cid:396)i(cid:272)e is a (cid:448)a(cid:396)ia(cid:271)le, do(cid:374)"t (cid:449)ait to figu(cid:396)e out the p(cid:396)i(cid:272)e. Big way to create and share value to customer. The role of price in the marketing mix. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the marketing mix that generates revenue.