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Week 4 Reflection
Week 4 Reflection

... considered a monopoly and overstocking the store would not maximize profits. Keeping a steady flow of supplies just below or at demand controls price and profits. A monopoly charges a price that is above marginal cost. A hospital competes in an oligopoly market structure. An oligopoly takes into con ...
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... means you have to consider the characteristics of various market segments, and their potential Rough segmentation may be done based on ...
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... highest) will meet the customer who wants the” hottest’’ new product (also having higher incomes). Once the high price is likely to become a factor in the cancellation of the demand, the company can descend it to the second level (the next lowest), drawing on its side the next segment (layer) of cu ...
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...  Loss of foreign exchange arising from importation of essential commodities whose domestic supply is insufficient. This foreign exchange could otherwise be used to import capital inputs necessary for economic growth and development.  Sale by discrimination and rationing of the scarcely available c ...
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... Once a company has chosen its placement strategy, the physical distribution of the product takes place. Distribution involves moving the product from the manufacturer to the point of sale. The longer the distribution chain is, the less efficient it is. ...
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... – Addresses a need for a product or service that is not currently being addressed by another provider or where there is room for competition. • For instance, instead of offering cleaning services, a business might establish a niche market by specializing in blind cleaning services. ...
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... reactions to how price discounts. For instance, retailers usually advertise the promotional prices in a way like “Was $99.95, and Now only in $52.95.” In such circumstances, consumers simply subtract the second part of price from the first one and recognize that the retailer is going to offer discou ...
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... All marketing efforts are directed at a specific group of consumers, this is called the target market. Target Market: any group of consumers to whom marketers want to sell their products and/or services to. Aggregate market – the target is everybody. Differentiated markets – the market is characteri ...
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... of competition will bring about lower prices and greater consumer choice.  Where competition alone has not been sufficient to protect the consumers' interest, government has created a series of regulatory bodies which can determine the level and structure of charges made by these utilities. In util ...
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Price discrimination

Price discrimination or price differentiation is a pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets. Price differentiation is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay.The term differential pricing is also used to describe the practice of charging different prices to different buyers for the same quality and quantity of a product, but it can also refer to a combination of price differentiation and product differentiation. Other terms used to refer to price discrimination include equity pricing, preferential pricing, and tiered pricing. Within the broader domain of price differentiation, a commonly accepted classification dating to the 1920s is: Personalized pricing (or first-degree price differentiation) — selling to each customer at a different price; this is also called one-to-one marketing. The optimal incarnation of this is called perfect price discrimination and maximizes the price that each customer is willing to pay, although it is extremely difficult to achieve in practice because a means of determining the precise willingness to pay of each customer has not yet been developed. Group pricing (or third-degree price differentiation) — dividing the market in segments and charging the same price for everyone in each segment This is essentially a heuristic approximation that simplifies the problem in face of the difficulties with personalized pricing. A typical example is student discounts. Product versioning or simply versioning (or second-degree price differentiation) — offering a product line by creating slightly different products for the purpose of price differentiation, i.e. a vertical product line. Another name given to versioning is menu pricing.↑ ↑ 2.0 2.1 2.2 2.3 ↑ 3.0 3.1 3.2 3.3 ↑ ↑ ↑ ↑ 7.0 7.1 7.2 7.3 7.4 7.5 ↑ 8.0 8.1 8.2 ↑ 9.0 9.1 ↑ ↑ 11.0 11.1 ↑ ↑
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