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Price Elasticity and Pricing Strategy
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A 5 page paper assessing the effects of the marketing department's recommendation that a producer of an unnamed product lower prices by 10 percent. The purpose here is to assess the effects of this action on profits and competitive responses. The paper considers the 4 Ps of marketing, price elasticity issues and effects on profits with and without competitive response. The most likely reaction will be that the producer gains a great advantage early on, which will begin to decline as competitors also reduce prices. The producer will gain less benefit as more competitors follow suit, for the consumer will have many choices of product at lower prices, rather than only the one of the early days of the price reduction. Bibliography lists 4 sources.
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Pages:
5
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Filename:CC6_KSmktgPriElas.rtf |
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Paper Title:
Price Elasticity and Pricing Strategy
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