MKT 100 Lecture Notes - Lecture 10: Monopolistic Competition, Liquor Control Board Of Ontario, Perfect Competition

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Prices can be both too high and too low. Price too low may signal poor quality. Price set too high might signal low value. 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. Monopolistic competition price going to several directions product differentiation. Availability of substitute: the more substitutes available, the greater the elasticity. Degrees of necessity or luxury: luxury products have higher elasticity than necessities. Proportion of income: products that represent a higher proportion of a consumers income will have greater elasticity. Timing: a one day sale will have different results than a permanent price decrease for a longer period of time. Price points: decreasing from . 00 to . 99 will have more elasticity than from . 98 to. When new seller enters the market at a low price.