MCS 1000 Chapter Notes - Chapter 14: Clayton Antitrust Act, Geographical Pricing, Price Discrimination

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

Document Summary

Chapter 14 arriving at the final price mcs*1000. Weighs factors like customer tastes and preferences more heavily than cost, profit. Example : gillette adopted this strategy for its five-blade fusion brand shaving system. Penetration pricing setting a low initial price on a new product to appeal immediately to the mass market. A firm using this may maintain the initial price for a time to gain profit lost from its low introductory level or lower the price further. Example: amazon chose this penetration strategy when it introduced its fire tablet computer at when other models were at . Prestige pricing setting a high price so that quality- or status-concious consumers will be attracted to the product and buy it. Refer to figure 14-3 in the textbook pg 260. Example: tag heuer raised the average price of its watches from to.