Chapter 10 Pricing in Different Kinds of Markets
Terms in this set (4)
the market consists of many buyers and sellers trading in a uniform commodity, such as wheat, copper, or financial securities. No single buyer or seller has much effect on going market price.
In a market like this, marketing research, product development, pricing, advertising, and sales promotion play little or no role. Thus, sellers in these markets do not spend much time on marketing strategy.
the market consists of many buyers and sellers trading over a range of prices rather than a single market price. A range of prices occurs because sellers can differentiate their offers to buyers. Because there are many competitors, each firm is less affected by competitors' pricing strategies than oligopolistic markets
market consists of only a few large sellers. For example, only a handful of providers—Comcast, Time Warner, AT&T, and Dish Network—control a lion's share of the cable/ satellite television market. Because there are few sellers, each seller is alert and responsive to competitors' pricing strategies and marketing moves. In the battle for subscribers, price becomes a major competitive tool.
the entire market is dominated by one seller
the seller may be a government monopoly, like the United States Postal Service , be a government monopoly (the U.S. Postal Service), a private regulated monopoly (a power company), or a private unregulated monopoly (De Beers and diamonds). Pricing is handled differently in each case.