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Price Skimming
Price skimming is a price setting strategy that a firm can employ when launching a product or service for the first time. By following this price skimming method and capturing the extra profit a firm is able to recoup its sunk costs quicker as well as profit off of a higher price in the market before new competition enters and lowers the market price. It has become a relatively common practice for managers in new and growing market, introducing prices high and dropping them over time. Price skimming is sometimes referred to as ''riding down the demand curve''. The objective of a price skimming strategy is to capture the consumer surplus early in the product life cycle in order to exploit a monopolistic position or the low price sensitivity of innovators. * Price skimming happens when a marketer initially offers an item at a high price that consumers with the strongest desire and funds to purchase it will, and then as that demand is depleted the price gets lowered to the next lay ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Skimming Small
A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the commercial exchange, the payment for this product will likely be called its "price". However, if the product is "service", there will be other possible names for this product's name. For example, the graph on the bottom will show some situations A good's price is influenced by production costs, supply of the desired item, and demand for the product. A price may be determined by a monopolist or may be imposed on the firm by market conditions. Price can be quoted to currency, quantities of goods or vouchers. * In modern economies, prices are generally expressed in units of some form of currency. (More specifically, for raw materials they are expressed as currency per unit weight, e.g. euros per kilogram or Rands per KG.) * Although prices ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hardback
A hardcover, hard cover, or hardback (also known as hardbound, and sometimes as case-bound) book is one bound with rigid protective covers (typically of binder's board or heavy paperboard covered with buckram or other cloth, heavy paper, or occasionally leather). It has a flexible, sewn spine which allows the book to lie flat on a surface when opened. Modern hardcovers may have the pages glued onto the spine in much the same way as paperbacks. Following the ISBN sequence numbers, books of this type may be identified by the abbreviation Hbk. Hardcover books are often printed on acid-free paper, and they are much more durable than paperbacks, which have flexible, easily damaged paper covers. Hardcover books are marginally more costly to manufacture. Hardcovers are frequently protected by artistic dust jackets, but a "jacketless" alternative has increased in popularity: these "paper-over-board" or "jacketless" hardcover bindings forgo the dust jacket in favor of printing the cove ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Product Differentiation
In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as from a firm's other products. The concept was proposed by Edward Chamberlin in his 1933 book, '' The Theory of Monopolistic Competition''. Rationale Firms have different resource endowments that enable them to construct specific competitive advantages over competitors. Resource endowments allow firms to be different, which reduces competition and makes it possible to reach new segments of the market. Thus, differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. Although research in a niche market may result in changing a product in order to improve differentiation, the changes themselves are not di ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Model
A business model describes how an organization creates, delivers, and captures value,''Business Model Generation'', Alexander Osterwalder, Yves Pigneur, Alan Smith, and 470 practitioners from 45 countries, self-published, 2010 in economic, social, cultural or other contexts. The process of business model construction and modification is also called ''business model innovation'' and forms a part of business strategy. In theory and practice, the term ''business model'' is used for a broad range of informal and formal descriptions to represent core aspects of an organization or business, including purpose, business process, target customers, offerings, strategies, infrastructure, organizational structures, sourcing, trading practices, and operational processes and policies including culture. Context The literature has provided very diverse interpretations and definitions of a business model. A systematic review and analysis of manager responses to a survey defines business ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Microeconomics
Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics focuses on the study of individual markets, sectors, or industries as opposed to the national economy as whole, which is studied in macroeconomics. One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses. Microeconomics shows conditions under which free markets lead to desirable allocations. It also analyzes market failure, where markets fail to produce efficient results. While microeconomics focuses on firms and individuals, macroeconomics focuses on the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national policies relating to these issues. Microeconomics also d ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marketing
Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emphasize in advertising; operation of advertising campaigns; attendance at trade shows and public events; design of products and packaging attractive to buyers; defining the terms of sale, such as price, discounts, warranty, and return policy; product placement in media or with people believed to influence the buying habits of others; agreements with retailers, wholesale distributors, or resellers; and attempts to create awareness of, loyalty to, and positive feelings about a brand. Marketing is typically done by the seller, typically a retailer or manufacturer. Sometimes tasks are contracted to a dedicated marketing firm or advertising agency. More rarely, a trade association or government agency (such as the Agricultural Marketing ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pricing
Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acquire the goods, the manufacturing cost, the marketplace, competition, market condition, brand, and quality of product. Pricing is a fundamental aspect of product management and is one of the four Ps of the marketing mix, the other three aspects being product, promotion, and place. Price is the only revenue generating element amongst the four Ps, the rest being cost centers. However, the other Ps of marketing will contribute to decreasing price elasticity and so enable price increases to drive greater revenue and profits. Pricing can be a manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevai ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Predatory Pricing
Predatory pricing is a pricing strategy, using the method of undercutting on a larger scale, where a dominant firm in an industry will deliberately reduce the prices of a product or service to loss-making levels in the short-term. The aim is that existing or potential competitors within the industry will be forced to leave the market, as they are unable to effectively compete with the dominant firm without making a loss. Once competition has been eliminated, the dominant firm now having a majority share of the market can raise its prices to monopoly levels in the long-term to recoup its losses. The difference between predatory pricing and competitive pricing is during the recouping phase of lost profits by the dominant firm charging higher prices. With there being less firms in the market causing consumers to have fewer choices between products or services, these higher prices result in consumer harm. Predatory pricing usually causes consumer harm and is considered anti-co ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gerard Tellis
Gerard J. Tellis is a professor, author, speaker, and thinker. He has a PhD in Business from the Ross School of Business at the University of Michigan. He currently holds the Neely Chair of American Enterprise at the USC Marshall School of Business. He is also a distinguished visitor at Erasmus University Rotterdam and the Judge School of Business at Cambridge University, UK. He is one of the world’s leading experts in innovation, social media, advertising, and AI applications in business. Google Scholar Google Scholar is a freely accessible web search engine that indexes the full text or metadata of scholarly literature across an array of publishing formats and disciplines. Released in beta in November 2004, the Google Scholar index includes ... reports that he has over 200 publications (including seven books). These have currently over 28,000 Google cites.Google Scholar https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=gerard+tellis&btnG=. He has won over 25 awards ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Paperback
A paperback (softcover, softback) book is one with a thick paper or paperboard cover, and often held together with glue rather than stitches or staples. In contrast, hardcover (hardback) books are bound with cardboard covered with cloth, leather, paper, or plastic. Inexpensive books bound in paper have existed since at least the 19th century in such forms as pamphlets, yellowbacks, dime novels, and airport novels. Modern paperbacks can be differentiated from one another by size. In the United States, there are "mass-market paperbacks" and larger, more durable "trade paperbacks". In the United Kingdom, there are A-format, B-format, and the largest C-format sizes. Paperback editions of books are issued when a publisher decides to release a book in a low-cost format. Lower-quality paper, glued (rather than stapled or sewn) bindings, and the lack of a hard cover may contribute to the lower cost of paperbacks. Paperback can be the preferred medium when a book is not expect ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Product Versioning
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different markets. Price discrimination 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 payApollo, M. (2014). Dual Pricing–Two Points of View (Citizen and Non-citizen) Case of Entrance Fees in Tourist Facilities in Nepal. Procedia - Social and Behavioral Sciences, 120, 414-422. https://doi.org/10.1016/j.sbspro.2014.02.119 and in the elasticity of their demand. For price discrimination to succeed, a firm must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. All prices under price discrimination are higher than the equilibrium price in a perfectly-competitive ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
