Notas de lectura
More realistic and complex pricing
- Grado
- Institución
Detailed notes on pricing methods, descriptions and numerical examples. Essential for exam.
[Mostrar más]Vista previa 1 fuera de 2 páginas
Vista previa 1 fuera de 2 páginas
Añadir al carrito
Añadir al carrito
Vendedor
Seguir
cee214
Vista previa del contenido
4.11.19 Managerial EconomicsMore realistic and complex pricing
Pricing schemes
o Low price scheme: MR<MC or (P-MC)/P<1/|e|
- Maximises total profit rather than profit for individual product lines
o Loss leader: pricing low to entice consumers.
Pricing commonly owned substitutes
o To price commonly owned products, use marginal analysis
o Lower price of a product to decrease the demand for the substitute product.
- E.G. If there were only one car dealerships Marginal analysis would find the point
where MR=MC in order to maximise profits
- If there were 2 dealerships, reducing prices for one firm is likely to steal sales from
the other.
- If firm 1 acquires the substitute firm, it can increase prices as there are no alternatives.
o Product portfolio: considered a bundle of goods.
- Demand for a bundle of substitutes is less elastic than demand for the individual
products – less elastic demand implies a higher optimal price.
- Raise the price more on the inelastic products to increase profit margins.
o After acquiring a substitute, a firm can reposition the products so that they don’t directly
compete with one another in the portfolio.
o Moving products farther apart ‘geographically’ or ‘in product attributes’ can further
increase profit.
Pricing commonly owned complements
o Pricing decisions must consider the effects on the other products use as well as the first
product’s use.
o E.G. Reducing the price at one increases the demand at the other and thus increases MR
at both. Supermarket purchasing an adjacent car park.
o Demand for a bundle/product portfolio of complements is more elastic than demand for
individual products
- More elastic demand implies a lower optimal price.
Advertising and promotional pricing
o Promotional spending affects demand:
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cee214. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for 6,77 €. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now