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Foundations of Corporate SuccessHow Business Strategies Add Value$
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John Kay

Print publication date: 1995

Print ISBN-13: 9780198289883

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/019828988X.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2019. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 19 September 2019

Pricing and Positioning, 1

Pricing and Positioning, 1

Chapter:
(p.221) Chapter 14 Pricing and Positioning, 1
Source:
Foundations of Corporate Success
Author(s):

John Kay (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/019828988X.003.0014

The type of the competitive market in which firms operate will depend on the implicit rules that govern the behaviour of the companies. When there are long‐term relational contracts, there is the opportunity for prices to reflect the value of products to the customers as well as the cost of the product. Accordingly, the less stable the competitive environment, the greater the degree to which prices will be determined by cost rather than value.

Keywords:   airlines, competitive strategy, cost, game theory, market segmentation, price discrimination, pricing, products, relational contracts, value

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