Monopolistic competition is a market which has many different sellers that are all selling similar products. The bossiness selling in a monopolistically competitive market have some control over the price the choose to sell their product at, but not a lot. If a business in a monopolistically competitive market were to price their product to high, the consumers would move on to one of the many other similar products available at a lower price.
The products sold in a monopolistically competitive market are considered to be differentiated products. This means that although the businesses are selling something similar, they each search for something in their product that distinguishes it from the rest of the products in the market. Product differentiation is extremely important for businesses because it helps consumers see their product as different, or better than the others on the market and ensures more sales for them.
The products sold in a monopolistically competitive market are considered to be differentiated products. This means that although the businesses are selling something similar, they each search for something in their product that distinguishes it from the rest of the products in the market. Product differentiation is extremely important for businesses because it helps consumers see their product as different, or better than the others on the market and ensures more sales for them.
Size:
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Small Company
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Medium Company
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Large Company
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Features:
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Local Business
(Atcom Systems)
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Canadian Retail Business (Danier)
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Major Sports Business (TaylorMade)
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Differentiated Products
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Service, Mobility (they come to you), Convenience
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Location, Service, Luxury Products
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Control Over Price
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Some
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Some
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Some
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Mass Advertising
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Word of Mouth, Internet, Fliers
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Word of Mouth, Internet, Newspaper & Magazine Ads, Radio
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Internet, Newspaper & Magazine Ads, Television, Billboards, Celebrity Endorsements
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Brand Name Goods
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Few
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Some
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Many
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