Pricing Strategies for Market Structures
Babu Dev
researchproject1instructions.docxThe instructions concerning this assignment as well as the grading rubric are reproduced below.
Pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as far as the customer can bear. The pricing strategies for a producer operating in a perfect competition structure are also fairly intuitive. They are price takers, and hence price is set at the marginal cost of the product. This is due to the fact that there are many firms offering nearly identical products. However, there is optimal pricing for the market structures offering differentiated products with many competitors (oligopoly) or a few producers (monopolistic competition). These are much more complex and involved. It has been stated that differentiation in products that creates differences in customer valuation is the most prevalent type of competition. In such markets pricing strategies may include the three C’s of cost, competition, and customer.
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market structure.
Your paper should be around 10 double spaced pages, in APA Format and structured as follows:
Cover page with a running head
Abstract
1. Perfect Competition
1.1. Description
2. Monopolistic competition
2.1. Description
2.2. Pricing Strategies
3. Oligopoly
3.1. Description
3.2. Pricing Strategies
4. Monopoly
4.1. Description
4.2. Pricing Strategies
5. Case Study
6. Conclusion
References
Your paper needs to include at least three scholarly sources, i.e. peer reviewed articles. I strongly recommend the use of the APUS library for these sources, as most acceptable resources can only be found in protected databases.
If you are not familiar with the library, its Welcome Slideshow is a good place to start: https://apus.adobeconnect.com/_a795569749/LibraryWelcome2010/
I also strongly advise you to check the material specific to our class, under the Business Course Guides. I trust you will enjoy the two videos posted there. The Guide can be found at:
http://apus.campusguides.com/index.php?gid=564
|
Score |
Criterion |
Unsatisfactory |
Satisfactory |
Exceptional |
|
15% |
Identification of Market Structures |
Did not fully identified the market structure |
Identified the industry structure correctly. |
In addition to meeting the requirements of satisfactory, provided an analysis of each requirements i.e., number of firms, uniformity of products, ease of entry and exit. |
|
35% |
Identification of Appropriate Pricing Strategies |
Did not identify appropriate pricing strategies. |
Identified all appropriate pricing strategies. |
In addition to identifying all appropriate pricing strategies provided a detailed analysis of which pricing strategies are appropriate to each market structures. |
|
15% |
Identification of Application of Pricing Strategies to market structures |
Did not clearly identify appropriate applications of pricing strategies specifically related different market structures. |
Clearly identified appropriate applications of pricing strategies specifically related different market structures. |
In addition to clearly identifying applications of pricing strategies specifically related different market structures, developed a real-world example of such correlation between market structures and pricing strategies. |
|
10% |
Demonstrate Critical Thought in Analyzing Information |
Does not demonstrate critical thought in the analysis of the information, or analysis is disjointed |
Demonstrates critical thought in analyzing the information by presenting various perspectives on the concepts |
In addition to meeting requirements of satisfactory, synthesizes information across concepts effectively |
|
10% |
Demonstrate Quality and Effectiveness in Written Communication |
Written communication is ineffective, with numerous spelling and grammatical errors or poorly constructed sentences |
Written communication is effective |
In addition to meeting the requirements of satisfactory, the paper is engaging to the reader with concise and clear communication |
|
10% |
Adhere to APA Writing Style Requirements |
Numerous errors in format, style, or reference citation |
Few errors in format, style, or reference citation |
Virtually no errors in format, style, or reference citation |
|
5% |
Citation |
Did not provide an appropriate citation. |
Provided an appropriate citation |
N/A |
