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MKT302 Mod 5 Case: The Marketing Mix: Price - Coursework Example
Author : sunny82
Pages 3 (753 words)
MKT302 Mod 5 Case: The Marketing Mix: Price Introduction Pricing is often argued as highly important in determining the purchase decisions of customers, especially for the group of customer who tend to be much inclined towards price rather than quality as in the case of luxury products…
In this paper, the pricing strategies in relation to two different products, i.ee canned vegetables and aspirin will be illustrated to identify the influences caused by the variables on price determination. In this context, canned vegetables can be categorized as non-basic goods and aspirin as a basic good. Pricing Method of Canned Vegetables In relation to the pricing method of canned vegetables, the availability of substitutes can be observed prevailing at a high degree than that observed in the case of aspirin. Canned vegetables as a non-basic good is often observed to be highly influenced by demand fluctuation in the consumer market owing to various aspects such as economic volatility, consumer awareness and availability of sophisticated vegetable-packaged goods to substitute canned vegetables (SEOBook.com, 2013). Hence, a cost pricing method is often followed for canned vegetables due to its behavior as a non-basic good (Etzel, Walker, Stanton & Pandit, 2008). It is worth mentioning in this context that such non-basic goods are perceived to be highly influenced with the availability of substitutes which further reduces the switching costs of the buyers and therefore imposes significant influences on the pricing methods. ...