Examples of market price in the following topics:
-
- Price is determined by the intersection of market demand and market supply; individual firms do not have any influence on the market price in perfect competition.
- Once the market price has been determined by market supply and demand forces, individual firms become price takers.
- The demand curve for an individual firm is thus equal to the equilibrium price of the market .
- This means that if any individual firm charged a price slightly above market price, it would not sell any products.
- The demand curve for an individual firm is equal to the equilibrium price of the market.
-
- NuMart, who is looking to sell this product in the same area, also prices their product at $3.99 in order to capture market share.
- They will not receive higher profits per unit than Walmart with this pricing strategy, and will have to engage in marketing tactics to engage customers, since the price itself is not an incentive.
- In economics, competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.
- Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
- This means that marketers will set prices depending on the results from their research.
-
- A price floor will only impact the market if it is greater than the free-market equilibrium price.
- A price floor will also lead to a more inefficient market and a decreased total economic surplus.
- Producer surplus is the amount that producers benefit by selling at a market price that is higher than the least they would be willing to sell for.
- An effective price floor will raise the price of a good, which means that the the consumer surplus will decrease.
- If a price floor is set above the free-market equilibrium price (as shown where the supply and demand curves intersect), the result will be a surplus of the good in the market.
-
- In combination with market demand, the market supply curve is requisite for determining the market equilibrium price and quantity.
- " If a firm has market power, its decision of how much output to provide to the market influences the market price, then the firm is not "faced with" any price, and the question is meaningless.
- The attributes of a competitive market signal that the price is set external to any firm.
- Therefore, production in the market is a sliding scale dependent on price.
- As price increases, quantity increases due to low barriers to entry, and as the price falls, quantity decreases as some firms may even opt out of the market.
-
- In the global marketing mix, pricing factors are manufacturing cost, market place, competition, market condition, and quality of product.
- The goal of pricing in global marketing strategies falls under three criteria:
- Like national marketing, pricing in global marketing is affected by the other variables of the marketing mix.
- Price will always vary from market to market.
- Summarize how proper pricing from a global marketing perspective impacts a company
-
- The purpose of price discrimination is to capture the market's consumer surplus.
- Price discrimination is prevalent in varying degrees throughout most markets.
- Gender based prices: in certain markets prices are set based on gender.
- These graphs show multiple market price discrimination.
- Instead of supplying one price and taking the profit (labelled "(old profit)"), the total market is broken down into two sub-markets, and these are priced separately to maximize profit.
-
- Pricing factors are manufacturing cost, market place, competition, market condition, and quality of the product.
- Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
- Psychological pricing is a marketing practice based on the theory that certain prices have a psychological impact.
- Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
- Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.
-
- These regulations require a more gradual increase in rent prices than what the market may demand.
- By definition, however, price ceilings disrupt the market.
- By setting a maximum price, any market in which the equilibrium price is above the price ceiling is inefficient.
- For a price ceiling to be effective, it must be less than the free-market equilibrium price.
- It is also the price that the market will naturally set for a given good or service.
-
- Sometimes such pricing can take the form of a firm setting a market share objective and discounting their price relative to their competitor until they attain it.
- For example, if a firm sets a market share objective when the market size is fixed or declining, then this immediately signals that this gain in market share will come at the loss of a competitor.
- Focusing on market share does not necessarily lead to maximum profits.
- Price cannot be used as a variable when constructing a marketing mix; it becomes a constant over which the firm has no control.
- Companies that employ competitor-based pricing can use computer programs such as this to analyze market share.
-
- Psychological pricing is a marketing practice based on the theory that certain prices have meaning to many buyers.
- Price, as is the case with certain other elements in the marketing mix, has multiple meanings beyond a simple utilitarian statement.
- We call prices that end in such digits as 5, 7, 8, and 9 "odd prices. " Examples of odd prices include: $2.95, $15.98, or $299.99 .
- Psychological pricing is one cause of price points.
- For a long time, marketing people have attempted to explain why odd prices are used.