BUS 343 Lecture Notes - Lecture 2: Profit Margin, Marginal Cost, Marginalism
16 Sep 2016
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P = value that customers give up or xc to obtain a desired product: payment must be in the firm of money, g, s, favors, votes, etc. Anything that has value to the other party: often monetary value = called something other than p to hide the idea you"re being charged a p or perhaps to assume an air of greater respectability. Marketing = process that creates xcs of things of value: p can mean xcs of nonmonetary value or money itself. E. g. bartering = xc one g/s for another b/c p = what consumers give up to buy & use a product, other monetary costs are important to. Bartering still occurs today, facilitated through the internet both marketers & consumers: psychological costs = involve the stress, anxiety, mental difficulty of buying & using a g/s. Incl assembling, value proposition, use of the g, etc. Recall cognitive dissonance, which is also a psychological cost.
