logo image

Customer perspectives of the price structure

Any price change will certainly affect customers, competitors, distributors, and suppliers and may interest government as well. Here I will consider virgin customers reactions.

Customers do not always put straightforward interpretation on price changes. A price cut can be interpreted in the following ways; the service is about to be repacked; the service has some fault and is not selling well; the firm is in financial trouble and may not stay in business to supply future parts; the price will come down even further and it pays to wait; or the quality has been reduced.

A price increase which would normally deter sales may carry positive meaning to the customer; the service is very hot and may be unobtainable unless it is bought soon; the srvice represents a usually good value; or the seller is greedy and is charging what the traffic will bear. Buyer’s reactions to price changes also vary with their perception of the product’s cost in relation to their total expenditures.

Buyers are most prices sensitive to produce that cost a lot and/or are bought frequently, whereas they hardly noticed higher prices on small items that they buy infrequently. In addition, buyers are normally less concerned with the product’s price than the total costs of obtaining operating and serving the product. A seller can charge more than the competition and still get the business if the customers can be concerned that the total costs are lower.

Read full document

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register
Signup & Access Essays

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy