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Smart Pricing - Wharton Executive Education
Smart Pricing - Wharton Executive Education

... margin. This low price was also extremely competitive, compared to the high price of 2,000–3,000 yuan set by a French company in China selling similar scarves sourced—you guessed it—from this very manufacturer. On paper, the Chinese company looked as if it should be very competitive in the marketpla ...
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... issues surrounding monopolistic competition. In Figures 1–3 the price is above marginal cost, which means that the market is allocatively inefficient. When price is greater than marginal cost, the value that consumers place on the last unit bought is greater than the cost of producing that unit, so ...
Marketing #5
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... They are NOT legally enforceable Some major ethical criticisms of marketing include: o Creation of needs – materialism o Stereotypical gender images o Use of sex to sell products o Product placement Ways in which marketers may engage in unethical advertising may include: o Untruths due to concealed ...
Graphing Changes in Demand: Shifting Demand Curves
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... Section 3 - What Can Cause Demand to Change? As the law of demand recognizes, price is key when people are deciding what and how much to buy. But other factors can influence demand as well. Suppose, for example, that a street fair were held on the block where Jasmine’s taqueria is located. She might ...
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[Skip Breadcrumb Navigation] Home Chapter 7: Analyzing Business

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economicscommentator - South Dakota State University

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File - School of Business Mrs. Kelly @ SHSE

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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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