MKT 100 Lecture Notes - Lecture 10: Marketing, Geographical Pricing, Root Mean Square

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: All

Document Summary

The overall sacri ce a consumer is willing to make to acquire a speci c product (eg. Different signals can be set by the price: (1) prices can be both too high and too low. (2) prices set too low may signal poor quality. (3) prices set too high might signal low value. Pro t orientation max pro ts, target return pricing, and target pro t pricing. Competitor orientation consider the prices of competitors. Customer orientation set prices based of customers expectations: costs. Variable costs vary with production volume (eg. Fixed costs unaffected by production volume (eg. Total costs sum of variable and xed costs. Break even point fixed costs / price - variable cost per unit: competition. Monopoly one rm controls the market (fewer rms but less price competition) Monopolistic competition many rms selling differentiated products at different prices (many rms but less price competition) Oligopoly a handful of rms control the market (fewer rms but more price competition)