is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.
The Robinson-Patman Act is an amendment to the 1914 Clayton Antitrust Act and is supposed to prevent "unfair" competition.
Price discrimination is illegal if it's done on the basis of race, religion, nationality, or gender, or if it is in violation of antitrust or price-fixing laws.
Standard worldwide price is possible if foreign marketing costs are low and do not affect overall costs; Dual pricing establishes separate domestic and export price strategies; Market-differentiated pricing allows companies to price products according to marketplace conditions.
EXAMPLES
Skimming - IPOD; Penetration - Emachines computers; Competitive - cell phone sales
1. Cost:
While fixing the prices of a product, the firm should consider the cost involved in producing the product. This cost includes both the variable and fixed costs. Thus, while fixing the prices, the firm must be able to recover both the variable and fixed costs.
2. The predetermined objectives:
While fixing the prices of the product, the marketer should consider the objectives of the firm. For instance, if the objective of a firm is to increase return on investment, then it may charge a higher price, and if the objective is to capture a large market share, then it may charge a lower price.
3. Image of the firm:
The price of the product may also be determined on the basis of the image of the firm in the market. For instance, HUL and Procter & Gamble can demand a higher price for their brands, as they enjoy goodwill in the market.
4. Product life cycle:
The stage at which the product is in its product life cycle also affects its price. For instance, during the introductory stage the firm may charge lower price to attract the customers, and during the growth stage, a firm may increase the price.
5. Credit period offered:
The pricing of the product is also affected by the credit period offered by the company. Longer the credit period, higher may be the price, and shorter the credit period, lower may be the price of the product.
6. Promotional activity:
The promotional activity undertaken by the firm also determines the price. If the firm incurs heavy advertising and sales promotion costs, then the pricing of the product shall be kept high in order to recover the cost.
Fair-trade laws protect businesses and governments from companies or countries attempting to dump goods into a marketplace at low prices or with unfair subsidies. Initially, fair trade was primarily a domestic issue; after World War II, fair-trade laws developed into a key tenet of international trade relations.
The U.S. and other governments provide financial assistance, or subsidies, to companies to aid in the production, manufacture, or exportation of goods. Subsidies run the gamut from cash payments to companies to loans granted at below market rates to stimulate sales in other countries. When governments determine that an unfair subsidy has been granted, they can offset the subsidy through higher import duties, thus keeping competition open between foreign and domestic companies.
Answer: was a statute in any of various states of the United States that permitted manufacturers the right to specify the minimum retail price of a commodity, a practice known as "price maintenance". Such laws first appeared in 1931 during the Great Depression in the state of California.
Such laws first appeared in 1931 during the Great Depression in the state of California. They were ostensibly intended to protect small businesses to some degree from competition from very large chain stores during a time when small businesses were suffering. Many people objected to this on the grounds that if the manufacturers could set the price, consumers would have to pay more even at large discount stores. The complexity of the market also made the enforcement of these laws almost impractical. As the chain stores became more popular, and bargain prices more common, there was a widespread repeal of the laws in many jurisdictions. By 1975, the laws had been repealed completely.
Answer: In a bundle pricing, companies sell a package or set of goods or services for a lower price than they would charge if the customer bought all of them separately. Common examples include option packages on new cars, value meals at restaurants and cable TV channel plans. Pursuing a bundle pricing strategy allows you to increase your profit by giving customers a discount.