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Activity-based costing. --- Competition. --- Learning. --- Market leader. --- Price setting.
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Activity-based costing. --- Cost complexity. --- Decision making. --- Price setting.
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Newpharma is a Belgian online pharmacy operating on several markets such as Belgium, France, Holland and Germany. They sell pharmaceutical and para-pharmaceutical products on the Internet and deliver the parcel to the patients. They position themselves as Belgian leader and compete on the other international markets to gain market share and rank the top-3. To achieve their objectives, they developed a large offer for customers and want to propose the best prices. Looking at the objectives of the company we oriented the pricing strategy to an everyday low pricing strategy. This implies a heavy control of the costs structure. In order to be able to low-price a cost domination strategy is necessary to succeed. You will observe that three main components basically influence the pricing strategy and the price setting: the customer, the costs and the competition.
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Mainstream economics views demographic changes in the structure of households as of little relevance for the behavior of firms or the functioning of markets. The present paper dispels this view by arguing that changes in the number of non-workers could affect the intensity with which consumers search for best prices and therefore the level of competition. The author also analyzes the relationship between income and competition, which some studies suggest is negative. The author argues that the negative relationship is most likely due to the demographic factors discussed.
Economic Theory and Research --- Education --- Emerging Markets --- Knowledge for Development --- Labor market --- Labor Policies --- Macroeconomics and Economic Growth --- Market competition --- Markets and Market Access --- Price setting --- Private Sector Development --- Product markets --- Retail --- Retail stores --- Retailing --- Social Protections and Labor --- Spread --- Suppliers --- Tying
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Mainstream economics views demographic changes in the structure of households as of little relevance for the behavior of firms or the functioning of markets. The present paper dispels this view by arguing that changes in the number of non-workers could affect the intensity with which consumers search for best prices and therefore the level of competition. The author also analyzes the relationship between income and competition, which some studies suggest is negative. The author argues that the negative relationship is most likely due to the demographic factors discussed.
Economic Theory and Research --- Education --- Emerging Markets --- Knowledge for Development --- Labor market --- Labor Policies --- Macroeconomics and Economic Growth --- Market competition --- Markets and Market Access --- Price setting --- Private Sector Development --- Product markets --- Retail --- Retail stores --- Retailing --- Social Protections and Labor --- Spread --- Suppliers --- Tying
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