MKT 100 Lecture Notes - Lecture 9: Value-Based Pricing, Perfect Competition, Monopolistic Competition

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Julie Kellershohn

Document Summary

Prices can be both too high and too low. Price set too high might signal low value. Price is usually ranked as one of the most important factors in purchase decisions. Price is the only element in the markeing mix that generates revenue. Achieve the inancial goals of the company: proitability. Fit the environment: will customers buy at that price. Be consistent with the variables of the markeing mix. Monopoly/no compeiion: is where there is a single supplier who has control over price, quality and supply. Oligopoly: is when a market dominated by a few suppliers that require very large investments in equipment or technology. Monopolisic compeiion: has many suppliers with a variety of product, each of which has a small market share. Perfect compeiion: is when many suppliers sell essenially the same product. When demand increases more than supply increases prices rise. When demand increases less that supply increases prices fall.