One requisite is the ability to identify and seal off groups of prospects who differ in sensitivity of sales to price or differ in the effectiveness of competition (cross-elasticity of demand).
In reality, most products differ in terms of price and quality, factors of production are often used for specific tasks, and many products exported by developing countries are no longer produced in the U.S.
To enhance profits, we split the market into sectors that differ in price sensitivity, charging higher prices to those who are impervious and lower prices to the more sensitive souls.
Full-service hardware stores and home centers offer a variety of respirators (If you cannot find a good respirator at these locations, go to a supplier that specializes in safety equipment. Look in the Yellow Pages under "Safety Equipment").. Respirators are not all alike; they differ in price and in the different levels of comfort and protection they offer.
Respirators are not all alike; they differ in price and in the different levels of comfort and protection they offer.
These contractors differ in price and the type of information products they provide.
Nevertheless, the marginal costs of nonintegrated health insurers and HMOs differ in two respects: the price paid to health care providers, which may involve a raise rivals' cost effect, and the average health risk of their respective policyholders, i.e. the adverse selection due to the risk segmentation mentioned above.
In addition to physical and performance-related differences, these categories of products differ in price, where they are typically sold, and the type of ENDS users that purchase them.
Creating opportunities to split the market into segments that differ in price sensitivity and in competitiveness, so as to simultaneously charge higher prices in insensitive segments and price low to elastic sectors, can produce extra profits and faster cost-compression for a new product.
Although these methods differ in terms of how the price variable enters individual's utility function (a numerical representation of their preferences), the essence of both methods lies in the concepts of opportunity costs and trade-off.
