MCS 1000 Chapter Notes - Chapter 13: Marginalism, Marginal Cost, Demand Curve

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Douglas Adlam

Document Summary

Price the money or other consideration exchanged for the ownership or use of a product or service. Barter the practice of exchanging products or services for other products or services. Buyers more willing to pay extra fees than a higher price list, sellers use add-on charges as a way of having customers pay more without raising the list price. All factors that increase or decrease the final price of an offering help construct a price equation . Price equation: price = list price incentives and allowances + extra fees. To generate profits, international firms search for both new markets to increase revenues and suppliers who efficiencies and lower hourly wages can reduce the price of buying firms must pay. From consumers standpoint, price often used to indicate value when it is compared with the perceived benefits such as quality, durability, etc. of a product or service. Value ratio of perceived benefits to price.