MCS 1000 Lecture Notes - Geographical Pricing, Monopolistic Competition, Dynamic Pricing

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: l

Document Summary

Sum of all the values that consumers exchange for the benefits of having or using the good or service. What price is and what it is not! Marketers do not make decisions about costs, they make decisions about prices. The practice of charging different prices depending on individual customers and situations. Sites like ebay even add the ability to negotiate price to dynamics pricing practices. Other environmental factors (economy, resellers, government, social concerns. Cost of 3 month billboard campaign (fixed) Cost of the parts that go into manufacturing the marketer"s product. (variable) A way of measuring how sensitive the market is to price changes. Inelastic: minimal change in demand as price increases. Elastic: significant drop in demand in price increases. Pure competition: many buyers and sellers where each has a little effect on the going market price. Monopolistic competition: many buyers and sellers who trade over a range of prices.