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Marketing Management Lecture WEEK 4 FALL 2010 CB

Marketing Management Lecture WEEK 4 FALL 2010 CB - Consumer...

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ARJUN CHAKRAVARTI FALL 2010 Consumer Behavior - The Economic Versus Psychological View
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Why do we care about consumer behavior? WANT TO KNOW (1) WILLINESS TO PURCHASE AND PAY At what prices? At what quantities? Why? (2) SEGMENTS What kinds of groupings are informative? How many segments are there? How many people are in each segment? (3) WHAT IS THE TOTAL MARKET? Now you can make a demand curve and do micro econ
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What will people buy? We have to have a way to know how much a consumer fundamentally values an item. (Willingness to Pay) EVC: START WITH BASIC ECONOMICS Company has $100,000 in waste costs with old filter New filter technology saves $50,000 in waste costs What is the willingness to pay for the filter? Max price ? What doe the price that gets charged in the market depend on?
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Economic Value to the Consumer Analysis : Homework Another Example: MP3 player 1. Economic value to the consumer for this product? Look at all of the attributes that the product has. Figure out the value of every attribute associated with the product.
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