Test of Substitute Threat and Consumers’"Empathy"on Enterprise Pricing
Author(s): Wang Yi
Pages: 29-30,55
Year: 2015 Issue: 2
Journal: Shandong Textile Economy
Keyword: substitute; consumers; pricing; demand theorem;
Abstract: Principles of economics tell us that if other factors remain unchanged, the amount of consumer demand for a commodity and the commodity price change in the opposite direction, namely, demand increases when commodity prices decline, vice versa. The law of demand impacts and tests the pricing strategy of the enterprises, meanwhile, the emergence of various alternatives are constantly challenged the pricing strategies of the enterprises. Particularly the threat of substitutes and consumers"empathy"are two important factors must be considered by enterprises when determining their own market behaviors especially pricing.
Pages: 29-30,55
Year: 2015 Issue: 2
Journal: Shandong Textile Economy
Keyword: substitute; consumers; pricing; demand theorem;
Abstract: Principles of economics tell us that if other factors remain unchanged, the amount of consumer demand for a commodity and the commodity price change in the opposite direction, namely, demand increases when commodity prices decline, vice versa. The law of demand impacts and tests the pricing strategy of the enterprises, meanwhile, the emergence of various alternatives are constantly challenged the pricing strategies of the enterprises. Particularly the threat of substitutes and consumers"empathy"are two important factors must be considered by enterprises when determining their own market behaviors especially pricing.
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