A commodity is a type of product or service that sells at a market price determined by supply and demand. Customers see little difference in quality between commodity items and almost always choose based on price alone. As such, producers are forced to sell at the market price.
In many cases, a product or service is said to be partially commoditized meaning that customers may see minor differences between competing products but are primarily motivated by price. In such markets, it is difficult but not impossible for a producer to achieve a price that's higher than the market price.
A product or service that is sold at a market price determined by supply and demand. Individual buyers and sellers of a commodity typically have little or no influence over the price.
Techniques to establish product differentiation such as marketing and quality improvements typically have little effect when a product is commoditized or partially-commoditized. As such, commodity businesses typically focus on reducing costs and increasing output as the primary factors they can control.
This is the complete list of articles we have written about pricing.
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An overview of common pricing strategies.
A list of price discrimination strategies.
An overview of price wars.
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A definition of premium pricing with examples.
A definition of penetration pricing with examples.
The definition of variable pricing with examples.
A definition of channel pricing with examples.
An overview of supply and demand with examples.
The definition of value pricing with examples.
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