Management and Organizational Studies 2320A/B Study Guide - List Of Doughnut Shops, Predatory Pricing, Psychographic
14 Jul 2014
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Marketing causes prices to be higher due to the 3 factors: (intermediaries charge prices beyond the value of their high cost of distribution service, resellers justify it by saying that intermediaries do the job that otherwise would have to be done by manufactures or consumers, and markups reflect services that consumers want themselves(e. g. larger stores, longer opening hours)) high ad and promotion cost (e. g. pills of the heavily promoted brand are sold for higher price then same pills of the generic brand; packaging adds psychological value to the product rather then functional; marketers justify themselves by saying that brand name give buyers assurance of quality) excessive markups funeral services and for auto repairs) (pills that cost 0,50 cents are sold for , high charges for. Companies make their product in the way it becomes obsolete before they actually need replacement. By using materials or components that will brake, rot sooner than they should.
