Price Is Just One Component of a Customer's Total Cost

question 31

Essay

Price is just one component of a customer's total cost of "owning" a product. Explain this statement.

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Definitions:

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion.

Frustration

The feeling people get when goals they are trying to attain are blocked.

Aggression

Behavior intended to harm or intimidate others, which can be physical or verbal, and is often a response to frustration or perceived threats.

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture, often accompanied by a feeling of contempt for other cultures.