MKT 100 Chapter Notes - Chapter 11: Iphone 8, Iphone X, Monopolistic Competition

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Fathima Saleem

Document Summary

Price is a signal: prices can be both too high and too low (determining optimal price takes great amount of research; has to be compatible with members, industry, competitors) Chapter 11: price: price too low may signal poor quality, price set too high might signal low value, has a lot to do with consumer conception. The role of price in the marketing mix: price is usually ranked as one of the most important factors in purchase decisions, price is the only element in the marketing mix that generates revenue. Walmart: be consistent with other variables of the marketing mix. In general, marketing mix has to tie in together; where product is distributed, advertised has to fit in with the price charged for product. Price sensitivity is high : when competitors feature price in advertising, when new seller enters the market at a low price.