Prices and Costs

  • Merlin Stone
  • Hamish Macarthur

Abstract

Price is a key determinant of marketing (and business) success. Cutting price without a corresponding fall in unit costs (for instance, via higher volume) reduces profit margin. Competitors may react, or even over-react (common in unstable situations). A price raised without a corresponding extra incentive to the customer can cause reduced sales, accumulated inventory and slower asset turn.

Keywords

Marketing Expense Havoc 

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Copyright information

© Merlin Stone and Hamish Macarthur 1984

Authors and Affiliations

  • Merlin Stone
  • Hamish Macarthur

There are no affiliations available

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