营销学教学课件（英文版）pom12_media10.pptVIP

Factors to Consider When Setting Prices Other Internal and External Consideration Affecting Price Decisions Oligopolistic competition is a market with few sellers because it is difficult for new sellers to enter who are highly sensitive to each other’s pricing and marketing strategies Pure monopoly is a market with only one seller. In a regulated monopoly, the government permits a price that will yield a fair return. In a non-regulated monopoly, companies are free to set a market price. Factors to Consider When Setting Prices Other Internal and External Consideration Affecting Price Decisions The demand curve shows the number of units the market will buy in a given period at different prices Normally, demand and price are inversely related Higher price = lower demand For prestige (luxury) goods, higher price can equal higher demand when consumers perceive higher prices as higher quality Factors to Consider When Setting Prices The Demand Curve Other Internal and External Consideration Affecting Price Decisions Factors to Consider When Setting Prices Other Internal and External Consideration Affecting Price Decisions Price elasticity of demand illustrates the response of demand to a change in price Inelastic demand occurs when demand hardly changes when there is a small change in price Elastic demand occurs when demand changes greatly for a small change in price Price elasticity of demand= % change in quantity demand % change in price Factors to Consider When Setting Prices Other Internal and External Consideration Affecting Price Decisions Factors affecting price elasticity of demand Unique product Quality Prestige Substitute products Cost relative to income Factors to Consider When Setting Prices Other Internal and External Consideration Affecting Price Decisions Competitors Strategies and Prices Factors to consider Comparison of offering i