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Adjusting prices of a product

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Identify and explain four ways marketing managers adjust the basic list price for consumer products. Why do marketing managers make these adjustments?

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Solution Summary

This solution looks at why a product's price could suddenly change, and why these changes may have occurred.

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I will answer both parts together.

1) The manager can simply raise the price. Perhaps the product started off with a special intro price (promotional price) that was during market penetration. Now the product is selling well, and people are aware of it and they have built a loyal client base, so they can then raise the price. If people are willing to pay more, why not increase the price.

2) The manager ...

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