MKT 100 Lecture : Week 11

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Marla Spergel

Document Summary

Availability of substitutes the more substitutes available, the greater the elasticity. Degree 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 . 97. Is the strategy of establishing a high initial price for a product with a view to skimming the cream off the market at the upper end of the demand curve. Enter low to establish economies of scale and awareness. After building quality and awareness you increase price. Low margin penetration price on a product knowing you will be able to make higher margins and profits on after-market sales. Buy more from us and we will give you a break on the total price.