In the paper “Main Factors Affecting Product Pricing in the UK” the author analyses pricing, which is affected by two broad factors, internal factors which include cost, the purpose of marketing, factors surrounding the organization (internal) and external factors…
Download file to see previous pages...
These factors are sometimes specific to products whereas at times they run across all or many products. (DBIS, 2011) Factors determining product pricing in UK One interesting factor that determines product pricing in the UK is gender. It might not affect all products but it does affect some products. According to the Association of British Insurers (ABI) research on “use of gender in insurance pricing”, gender plays a significant role in determining the price of insurance products. The researchers also report that there was, however, no patterned discrimination against either gender in this pricing. However, use of gender to determine the price of insurance commodities is conspicuous. For instance, ABI reports that young female drivers parted with less for insurance coverage as compared to their male counterparts. This is attributed to the lower chance of the female drivers having accidents in relation to male drivers. In another example, women gain more in matters of life insurance due to lower premiums because they have a longer life expectancy. Men, on the other hand, benefit from lower medical premiums between age thirty-five and fifty-five. This is due to the medical risks involved between the ages .i.e. women have higher medical risks. (ABI, 2010, pp. 4-10). Product differentiation is another determinant of product pricing in the UK. Product differentiation is bettering a commodity by making it different and of unique qualities as well as adding newness to the market. Product differentiation could bring with it advantages that include product variety which would result in lowered prices for consumers. Many differentiated products, therefore, are advantageous to the consumer. (Randall, 2009, pp. 17-19). Similar products by different companies lead to substitution by customers in case of price changes. Highly differentiated products, on the other hand, have lower price competition regardless of the number of companies that are competing. Examples of such products include cigarettes, beauty products and service industries like hotels among others. In such products, there is a monopoly in terms of pricing for the marketers since customers do not seem to look at pricing. British American Tobacco has not had a significant change in their number of customers despite an increase in its products’ prices. Therefore the less differentiated a product is, the higher the chance of its customers shifting to other competing products as a result of changes in pricing. (Wiley, 2005, pp. 2-5) Holcombe’s concept of an advantageous product differentiation has been employed in the UK by several departments, among them, the UK Department for International Development (DFID). The department conducted a research to establish how an introduction to this strategy could make medicine more accessible to patients. (Yadav, 2010, pp. 5-10). Government interventions and strategies, for instance, increase in interest rates, also tend to affect product pricing especially on financial assets like shares. The Bank of England is charged with the responsibility to regulate these rates and therefore the bank’s decision on the rates affects the prices of these assets. Increase in interest rates on these assets leads to increase in prices of the related commodities. (Bank of England, 2011).
...Download file to see next pagesRead More
Cite this document
(“Main Factors Affecting Product Pricing in the UK Essay”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1391950-economics
(Main Factors Affecting Product Pricing in the UK Essay)
“Main Factors Affecting Product Pricing in the UK Essay”, n.d. https://studentshare.org/macro-microeconomics/1391950-economics.
In the aftermath of the corporate scandals and current financial crisis, the overall importance of external audit and its scope has come under greater scrutiny. Increasingly, investors as well as regulators are demanding a better external audit function so that the overall interests of the stakeholders could be safeguarded.
Various jurisdictions across the world have recognized and created the right to education for all. Education is one of the primary roles of children in the society that trains them to become better and productive members of the society in their adult life.
Various marketing and promotional strategies such as focusing on parents as the key reference group and developing word-of-mouth strategy are among the vital factors evaluated in the study for the off brand product to gain its importance in the market. Introduction Marketing strategy of a product depends on various factors such as the product type, its price and the brand.
In this report, marketing strategy for Dr. Thunder is presented which would help the brand to acclaim nationwide promotion. Dr. Thunder is a soft drink brand offered by Wal-Mart in its stores. As the brand is cheap therefore there are less number of factors to be considered by customers at the time of purchase.
However, the various factors that determine or affect what we chose to eat at every particular time have been on the receiving end of numerous research studies. Apparently, what people chose to buy and consume depends on a wide array of factors outside individual or personal choices; such factors range from social, economic, through cultural to environmental factors, all of which seem to operate interrelatedly (Kearney et al, 1999,p.219; Buttriss et al, 2004,p.4; Pollard et al, 2002,p.373).
The author of this essay proposes the possible research of the obesity problem. Also, the factors that lead to obesity are described in this paper. Obesity is a condition which can be the base for many degenerative diseases affecting major bodily systems and an interesting aspect is that it can also affect the psychological condition of a person.
Through the use of advertisement and the ever so powerful word of mouth, the consistent theme of PS3 has created a strong brand image. Sony PS3 solid brand image has been reinforced and poses as a powerful purchase
Presidential leadership has been of much importance in the United States since it became a nation. While some individuals have advocated for the presidency whose role is to fulfill the will of Congress, others have sought to bring about a more assertive presidency where the actions of a president come about as a result of his own initiative.
5 Pages(1250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Main Factors Affecting Product Pricing in the UK for FREE!