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Pricing 价格(二)
•Perfect competition
Many buyers and sellers
Identical product
•Monopolistic competition
A large number of suppliers offer similar, not identical products
Ensure elastic demand, slight differences give some monopolistic power to the supplier
•Oligopoly
Relatively few competitive companies dominate the market
Cartel formed
Each large firm has ability to influence market price
•Monopoly
One seller dominate many buyers
Awareness of the concept of elasticity can assist management with pricing decision
In situation of very inelastic demand, customers are not sensitive to price. Quality, service, product mix and location are more important to a firm’s pricing strategy.
Marketing mix: Price, Product, Place and Promotion
Full-cost pricing
Disadvantages: Needs to adjust prices to market and demand conditions
Output volume is a key factor in the overhead absorption rate
(Market-based pricing)Target costing offers greater competitive advantage than cost plus pricing, being far more strategically oriented as it takes account of the external environment
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