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Oligopoly Pricing with Differentiated Products: The Boston Fluid Milk
Oligopoly Pricing with Differentiated Products: The Boston Fluid Milk

Download/view this resource (direct link to DOC file)
Download/view this resource (direct link to DOC file)

... The marketing plan describes strategies aimed at achieving objectives to get goods and services to customers. These strategies are based on tools and techniques referred to as the "four P's" or the marketing mix: product, price, place and promotion. Product consists of the products and services that ...
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Dominant Firm with a Competitive Fringe - CERGE-EI

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... sources, such as a price search engine and word-of-mouth communications, make it easy for consumers to compare prices among identical products or services before making purchasing decisions. Consumers made purchasing decisions on the bases of television or print advertisements. Today, with the Inter ...
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... both customers of Main Street Bank. Like most financial services companies, Main Street Bank is interested in reducing its churn rate. By applying its information about Bob to the predictive models it generated through its data mining activities, the bank is able to identify Bob as a customer who ha ...
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... the consumer segment(s) that could afford them. The findings also established similarity in their behavior with respect to the customer relationship management to a large extent. We embarked upon the research by pursuing case studies of four Chinese companies and the selection was made on the criter ...
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... wider price differences. In the foreseeable future, however, the continuing installation of modern plants in the United States should at least preserve the nation's present competitive position. Price discrimination, or "dumping," by foreign producers also could lead to lower import prices. For the ...
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AIPMM CPM/CPMM Certification Examination GLOSSARY OF

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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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