MCS 1000 Study Guide - Final Guide: Variable Cost, Break Even, Demand Curve

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

Document Summary

The typical way firms receive value from consumers is through the prices they pay for the products and services they receive. In order that the exchange may take place, it makes sense that the consumers perceive that they receive more value from the product than the price they are paying. Similarly, firms are receiving payment for an amount that should be above the cost of producing that good. In particular, it is not the same to price products with intense competition than products that are alone in the market or the price of products with a clear, unique and important benefit than products with little differentiation. Equally important to understand is that a product that has been in the market for some period is different from a product that is recently introduced. In the particular topic of pricing of new products, please revise the two generic strategies (price skimming and price promotion) that may be used in pricing process.