The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.
Price skimming is the process of setting a high price for a product when it is launched, then gradually reducing the price in order to access new market segments.
[Page 103]One of the most awkward problems in pricing is that different consumers have different views on what constitutes good value for money. Some people would pay a great deal more for a product than the company is asking, others feel it is too expensive and will not become customers: a firm that sets a single price for the product will find itself in effect giving away profit to the first group, who pick up a bargain, and losing sales to the latter group, even if the company could actually drop the price and still ...