MGTA05H3 Chapter Notes - Chapter 5: Perfect Competition, Market Price, Socioeconomics

• School: UTSC
• Department: Management
• Course: MGTA05H3
• Professor: Murphy Lawrence

Document Summary

When buyers and sellers interact how do markets work: a market is the interaction of buyers and sellers, exchanging information about products and services for sale. In a market, prices are set by buyers and sellers negotiating. A would-be consumer, in search of a product/ service, searches for one or more vendors: 2. A vendor, in search of a sale, tries to highlight the features and benefits of his product: 3. Information is exchanged between consumer and vendor: 4. Differentiation gives sellers the ability to charge more for their products: branding is one of the 3 principal methods of differentiating one"s product). It is the efforts by a supplier to get potential customers to recognize its name, colors, logo, or slogan, and therefore differentiate its products from those of all of its competitors. A larger branded supplier can gain customer loyalty, repeat sales, and perhaps charge more: market structures. All sellers charge more or less the same.