Other Internal and External Consideration Affecting Price Decisions
{"Image DocumentName": "Other Internal and External Consideration Affecting Price Decisions", "Image ImageDescription": "Competition. Pure competition. Monopolistic competition. Oligopolistic competition. Pure monopoly. Note to Instructor. Discussion Question. How has the Internet has changed pricing competition? Under pure competition, 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 the going market price. In a purely competitive market, 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. Under monopolistic competition, the market consists of many buyers and sellers who. trade over a range of prices rather than a single market price. A range of prices occurs because. sellers can differentiate their offers to buyers. Under oligopolistic competition, the market consists of a few sellers who are highly sensitive. to each other\u2019s pricing and marketing strategies. Because there are few sellers, each. seller is alert and responsive to competitors\u2019 pricing strategies and moves. In a pure monopoly, the market consists of one seller. The seller may be a government. monopoly (the U.S. Postal Service), a private regulated monopoly (a power company), or a. private nonregulated monopoly (DuPont when it introduced nylon). Pricing is handled differently. in each case. Copyright \u00a92014 by Pearson Education, Inc. All rights reserved.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}