1 / 9

Define – Motivating factors …to get you to do something …to get consumers to purchase goods

INCENTIVES. Define – Motivating factors …to get you to do something …to get consumers to purchase goods Types of…. BOGO Door Busters Price reduction Rebates Coupons Bundles . Reasons why firms give incentives ….. Increase sales/revenue Eliminate surplus Make room to restock

angelo
Download Presentation

Define – Motivating factors …to get you to do something …to get consumers to purchase goods

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INCENTIVES • Define – • Motivating factors …to get you to do something • …to get consumers to purchase goods • Types of…. • BOGO • Door Busters • Price reduction • Rebates • Coupons • Bundles

  2. Reasons why firms give incentives ….. • Increase sales/revenue • Eliminate surplus • Make room to restock • Get rid of outdated models

  3. Competition Among Producers: • Provides competitive pricing • Similar products • Encourages incentive practices • Sales tactics

  4. Drives market innovations • Technological improvements • Higher quality • Allows consumer choice • Available selections • Personal preferences • Income level

  5. Competition • Among Consumers • Creates bidding wars • Drives up the price of a good • Indicative of low supply, high demand • Signifies a market shortage

  6. Psychological component • Competitive drive • “Must win” mentality  “If so many people want it, I should have it” “Keeping Up With the Jones’”

  7. Examples: • eBay • Bidding on houses • Auctions • Black Friday

  8. -What happens when competition is limited by the power of a few companies? (Or only one company) • -Formation of Monopolies: (define-

  9. Person or company that is the only seller of a good or service. • Without government intervention, a monopoly is free to set any price it chooses and …. • will usually set the price that yields the largest possible profit.

More Related