MARK3000 Test 3

Core customer value (product components)

Marketers involved with development, design, and sale of products think of them in an interrelated fashion.

At the center is the core customer value which defined basic problem-solving benefits that customers are seeking, next is the actual product, followed by associated services

Actual and associated (product components)

Actual product- brand name, quality level, packaging, features/design (physical)

Associated services- financing, product warranty, product support. Also know as augmented product, include nonphysical aspects of product, such as warranties, financing, product support, and after sale services (nonphysical)

Specialty products

Those for which customers express such strong preference, expend considerable effort to search for best suppliers

Specialty products are typically high prices, buyer do not use much time to compare against other products- buyers spend more effort in buying

Purchased less frequently

Shopping products

products or services for which consumers spend a fair amnt of time comparing alternatives. Require personal selling and advertising and in fewer outlets (compared to convenience products)

Consumers compare attributes of shopping products such as quality, price, and style between other products

Convenience products

Products/services for which consumer not willing to expend any effort to evaluate prior to purchase

Bought most frequently

Bought immediately and without great comparison between options

Typically low priced, not differentiated among products, placed in locations where consumers easily purchase them, widely distributed and mass promoted

Unsought products

Products or services that consumers either do not normally think of buying, do not know about, or not buy under normal circumstances

Not type of mind with consumers, dont buy unless need

Product mix and product line

Complete set of all products offered called product mix. consists of various product lines, which are gorups of associated items consumers tend to use together or think as part of group of similar products

Product mix- breadth represents count of num. product lines offered

Product line- depth, equals numbers of products within line

Breadth: number of product lines in product mix→ may be too costly to maintain

Depth: num of products/brands within product line→ may cannibalize brands

Key biz considerations

Increase product mix breadth to capture new or evolving markets and increase sales

Decreasing mix breadth might be due to changing market conditions or internal strategic priorities

Primary advantage to increase product line depth is to increase overall sales and profits. But at the same time, adding competing products can cannibalize, or take sales from, curretn brands

Firms must determine the net effect on sales and overall impact on competitive products.

To address changing consumer preferences or preempt competitors while boosting sales, to realign resources

Brand

Product is an item or service produced and offered by co. for sale in market

A brand is entity like logo, symbol or name used by co. to make products identifiable among other prodcuts in marketplace

Branding

Process of creating a strong, positive perception of company, and product delivered, in your customer’s mind. Increases awareness and provides ways to differentiate

Elements of brand

Brand name, URLs, Logos, and symbols, characters, slogans, jingles or sounds

Value: facilitate purchases, establish loyalty, protect from competition, price competition, assets,

Brand equity

Consumer perception of brand name of a product or service, not a direct reflection on product itself

Cuts both ways: customers dislike some brands b/c firms actions or their negative perceptions

Brand awareness (brand equity)

How many consumers familiar

More awareness, higher chance of purchase

Familiarity matter for products that bought w/o much thought

Perceived value (brand equity)

Relationship between benefits and its costs

Own perception of product merit and desirability to them, in comparison to competition

Measure by price public willing to pay for good

Brand association (brand equity)

Mental and emotional links consumers make between brand and attributes, such as logo, color, slogan, famous personality

Brand associations often result of firm’s advertising and promotional efforts

Brand loyalty (brand equity)

Occurs when consumers buy same brand’s product or service repeatedly

• Important source of value for firms

• Consumers less sensitive to price

• Marketing costs much lower

• Firms insulated from competition

Branding strategies

Firms institute a variety from brand of brand-related strategies to create and manage key brand assets

Decision surrounding strats include:

• Whether to use manufacturer brands or retailer/store brands

• How to name brands and product lines

• Whether or not to extend brand name to other products and markets

• Should brand name be used with another firm or licensed to another firm

• Whether or not brand should be repositioned

Brand ownership

Few brands achieved high quality status and are often considered inferior to manufacturer or national brands

Exceptions include:

• Costco/kirkland

• Trader Joe’s

Manufacturer or national brand: kraft, nike, coke

Retailers/store brands (private label brands): kroger, costco, traderjoes

Family vs individual brand names

Family brands: corp name used across brands and product lines

Ex: kraft cheese, Heinz, Del monte

Individual brands: products havce individual identifiers

Ex: kraft owns velveeta, classico, jello

Detergents are good examples of individual brands: tide, bold, gain and surf

Brand and line extensions

Brand extensions: same brand name in different product lie. Coke branded chapstick

Line extensions: same brand name within same product line. Coke, diet coke, coke zero

Advantages of brand extension:

• Co. can spend less on brand awareness

• Positive consumer acceptance will spread to new prodcut and synergy exists between two products

Brand dilution

Not all brand extensions successful:

• Evaluate fit between core brand and extension

• Evaluate consumer perception of attributes of core brand and seek out extensions with similar attributes

• Refrain from extending brand name to too many products

• Is brand extension distanced enough from core brand

Co-branding

Marketing two or more brands together

Can enhance perception of quality through links between brands

Attracting consumers of one brand to the other brand

Brand licensing

Common for toys, apparel, accessories, and entertainment products such as video games

NBA licenses products like these New Orleans Pelicans hats to manufactuerer to exchange for negotiated fee (called royalty payments)

Brand repositioning (rebranding)

Changing a brand’s focus for new markets

Primary package

Container the consumer actually uses

Secondary package

exterior carton containing primary; provides UPC (universal product code) for scanners

Packaging functions

Protects product, provides convenience (storage/use) and acts as communication/promotion tool

Sustainable packaging

packaging designed to have less environmental impact

Labeling (general)

identifies product/brand; provides for needs, purchase decisions, and consumption

Labeling (regulations)

Determined by regulations that vary by state and country

Labeling (meaning tests)

terms like “natural”, “organic”, or made in “USA” must meet certain tests/standards before placed on label

Innovation

transforming ideas into new products/services

Improving biz relationships

weight waters+ wonder natural foods= co-branded innovation

Changing customer needs

Product development: coke→ diet coke→ coke zero→ coke life

Consumers wanted diet option→diet coke

Men dont like diet→ coke zero

Cal counts and no high fructose corn syrup→ coke life

Market saturations

Jeni’s splendid ice cream brand grows as ice cream category becomes crowded and mature

Co. must expand distribution, differentiate heavily, find new customer touchpoints

What Jeni does:

• Premium pricing

• Exclusive varieties

• 90 shops and grocery distrubution

• Franchise value on community

Diversity

General Mills diversifying portfolio across flavors, national formats, and consumer segments

Protects from shofting preferences, competition, stagnation

Innovation pioneer

Pioneers change comp and consumer preferences by introducing new-to-the-world product

Are first to create market or product category and become readily recognizable to consumers and establish a commanding and early market share lead

Can command greater market share over a longer period than later entrants can

Diffusion of innovation

Process by which use of an innovation- whether product, service, process- spreads through market group, over time and across various categories of adopters, referred to diffusion of innovation

Failed pioneers

Not all succeed. Many cases, imitators capitalize on weaknesses of pioneers and gain advantage in marker

• Google Glass

• Sony Betamax- JVC launched VHS a year later

• - Apple newton- ahead of its time (jumped over by Blackberry)

Diffusion of innovation curve

Number of users of an innovative product or service spreads through the population over a period of time and follows bell-shaped curve

Few people buy product at first, then more buy, finally fewer people buy as degree of diffusion slows

Purchases can be divided into 5 groups according to how soon buy product after it has been introduced: innovators, early adopters, early majority, late majority, laggards

Diffusion of innovation theory

1. Firms can predict which types of customers will buy their product immediately after its intro, as well as later as product gets more accepted by market

2. Firm can develop effective promotion, pricing, and other strategies to push acceptance among each customer group

Using diffusion of innovation theory

Different products diffuse at different rates

Marketers work to understand curve for each new product and service, as well as the characteristics of target customers in each state of diffusion

Various factors increase speed of diffusion:

• Relative advantage

• Compatibility

• Observability

• Complexity and Trialability

Four factors that impact diffusion rate

Relative advantage- if product is perceived to be better than substitutes, then diffusion will be relatively quick

Compatibility- higher the level of compatibility, quicker the diffusion; and lower compatibility, slower diffusion. product will diffuse more quickly if it does not require consumers to change their values, norms, lifestyles, cultures and daily behaviors

Observability- when products easily observed, benefits or uses are easily communicated to others, which enhances diffusion process

Complexity and trial ability- products are relatively less complex and are also relatively easy to try. products will diffuse more quickly than those that are not so easy to try

Product development process

1. idea generation

2. concept testing

3. product development

4. market testing

5. product launch

6. evaluation of results

1. Source of new product ideas (product development process)

Firms constantly scan environment looking for new product ideas

depending on co. strats, they use different sources of ideas

Internal research and development (sources of product ideas)

Larger firms maintain own R&D department and rely on to generate new product that will lead market

• High product development costs

• Often source of tech products

• Often source of breakthrough products

R&D consortia (sources of product ideas)

Develop new product ideas, more firms been joining an R&D consortia, or groups of other firms, possibly including gov and educational institutions, to explore new ideas or obtain solutions for developing new products

• Lower costs and risks

• Benefits spread to all firms

• Example: pharmaceutical/food research

Licensing (sources of product ideas)

Firms license use of new products, tech, processes. Small biotech firms license their inventions to larger pharmaceutical firms

Brainstorming (sources of product ideas)

Groups work together to generate ideas

No idea is immediately accepted or dismissed

Members vote on best idea or combination of ideas

Outsourcing (sources of product ideas)

In some cases, co. have trouble moving through these steps alone, which prompts them to turn to outside firms

Hiring outside firm to generate ideas and develop products

Design firms help clients generate new product and service ideas in industries such as health care, toys, computers

Competitors products (source of product ideas)

Products with patents or other proprietary protections cannot be copied, so reverse engineered products must be substantially different from source product

Customer input (sources of product ideas)

Listening is essential for successful idea generation and throughout the product development process

• Can be done in both B2B and B2C markets

Another particularly successful customer input approach is to analyze lead users. if lead users customize a firm’s products, other customers might wish to do so as well

• innovative product users who modify existing products according to their own specific needs

Concept testing (product development process)

concepts are presented to potential buyers or users to gauge reactions

A concept is brief, written description of product

Concept testing is process in which concept is presented to potential buyers or users to obtain reactions

Triggers marketing research process

Customer reactions to concept determine whether it goes forward

3. Product development process (product development process)

Engineering team develops product prototype based on research findings from previous concept testing step as well as their own knowledge about mats and tech

Product development or design entails process of balancing various engineering, manufacturing, marketing, and economic considerations to develop a product’s form and features or service’s features

Prototype- allows customers to interact with product physically. Some prototypes never actually go into production

Alpha testing- firm attempts to determine whether product will perform according to design and whether will perform according to design and satisfies need for which intended

Beta testing- uses potential consumers who examine prototype in a real-use setting to determine functionality, performance, problems, and toher issues specific to use

4. Market testing (product development process)

Premarket product test:

• customers exposed

• Customers surveyed

• Sales estimated

• firm makes decision

Market testing:

• Mini product launch

• More expensive than premarket test

• Market demand is estimated

Five types of market testing

1. Beta testing (for digital products): in case of software or apps, beta testing involves releasing a pre-launch version of product to a select group of users. These users, often referred to as beta testers, provide feedback on product’s functionality, usability, and performance.

• Does software work? identify bugs then fix before launch!

• Is UX (user experience) easy to understand or confusing

2. Test markets (for physical products): Business often use a test market strategy. This involves launching product in limited geographic area or market segment to assess consumer reactions

• By analyzing performance in test market, co. make adjustments before expanding to wider audience

3. A/B testing: A/B testing commonly used for digital products, websites, and marketing campaigns. Involves testing two different versions of a product or ad campaign to see which performs better

• Often used for package designs, product features or pricing strats

4. Focus group: some cases, co. conduct focus groups where small, diverse group of consumers brought together to discuss impressions of product. Qualitative approach provides insights to customer perceptions, preferences and potential barriers to purchase

5. Pilot programs: Small scale trial run of product in real world environment For example, a co. launching new line of smart home devices might offer product to small group of tech savvy users

Evaluate test results (Market testing)

During market testing phase, biz must carefully analyze data they collect. Could include sales figures, customer feedback, user engagement metrics, comp comparisons

Key questions to consider:

• Does product meet expectations?

• There any issues need to be addressed?

• How product compare to competition?

• Is pricing model resonating with customers?

• What marketing channels drive most interest and sales?

Based on results of market testing phase, biz can make necessary adjustments before proceeding to full scale launch

5. product development process: product launch

if marketing testing returns positive results, firm ready to introduce product to entire market. Most critical step in new product intro

Requires tremendous financial resources and extensive coordination of all aspects of marketing mix

Firm confirms its target markets, decides how product will be positioned, finalizes remaining marketing mix variables, and determines marketing budget

Timing of launch may be critical

Product launches are part ART and SCIENCE

Many tech co. use events to launch new product

Co. need to communicate product characteristics and key benefits to convince purchase

Launch strategy:

• Key message

• Target audience

Market selection:

• Digital or traditional- TV, Radio, Search, Social, Newspaper

Sales channel selection:

• E-Com vs retail partnership

Supply chain and distribution:

• Inventory, supplier relationships

Customer support and after sales service

6. Product development process: evaluation of results

Marketers cannot celebrate success but must understand failure. Question of why product fails is important as to why other succeeded

Underperforming product may require further development

• Satisfaction of technical requirements

• Degree of customer acceptance

• Satisfaction to firms financial requirements

Product lifecycle stage 1- Intro

The intro stage is characterized by initial losses to firm due to its high start-up cost and low levels of sales revenues as the product begins to take off

New-to-the-world products and services not only have high manufacturing costs, but high marketing expenditures because you must educate all consumers to your product, how it works, and the consumer benefits

Innovators are the ones to try the new product

Product lifecycle stage 2- growth

The growth stage is marked by a growing number of product adopters (early adopters), rapid growth in industry sales, and increased in number of competitors and number of available product versions

There is a tipping point- the transition between intro and growth when the product either gains market acceptance or must exit the market

Most new products fail at this point

Product lifecycle stage 3- maturity

The maturity stage of product life cycle is characterized by the adoption of the product by the lat majority and intense competition for market share among firms.

Firms pursue various strats during this stage to increase their customer base and/or defend their market share

In the maturity stage firms face intense comp on price as the avg price of product falls substantially compared with the shifts during the previous two stages of the life cycle

Lower prices and increased marketing costs begin to erod the profit margins for many firms.

In the later phases of maturity stage, market has become quite saturated, and practically all potential customers for product have already adopted the product

Product lifecycle stage 4- decline

Firms with products in the decline stage either position themselves for a niche segment of die-hard consumers or those with special needs or they completely exit the market

The few laggards who have not yet tried the product or service enter the market at this stage

Limitations of product life cycle

Understanding where product is on PLC is difficult

Each curve could be different, and managers do not know exactly what shapre their product’s life cycle will take

• Each product or service has its own shape

• Challenging to know precisely stage of PLC

Poor decision making can make a self-fulfilling prophecy

Situation: product experiences several seasons of declining sales

Task/action: manager may determine it has moved from growth stage to decline and so stops promoting product

Result: as result of market budget cut, sales decline further

The manager then believes he or she made right decision because product continues to follow a predetermined life cycle

But what if…

The OG sales decline was due to a poor strat or increased comp- issues that could have been addressed with positive marketing support

In this case, product life cycle decision became a self-fulfilling prophecy, and a growth product was doomed to an unnecessary decline

Service definition

Intangible offerings that involve an effort and performance that cannot be physically possessed

By providing good custoemr service, firms add vcalue to products and services

Service-product continuum

Illustrates continuum from a pure service to a pure good. Most offerings lie somewhere in middle and include some service and some good (hybrid)

Hard to separate co. that fall within product-service continuum

Doctor→ hotel→ dry cleaner→ restaurant→ grocery store

Marketing Myopia

Product we buy is valuable but service makes product more valuable

Services marketing differs from product marketing

Factors differentiating products from services:

1. Intangible

2. Inseparable

3. Heterogeneous

4. Perishable

Intangible

Service can’t be touchers, tasted, seen

Requires using cues to aid customers

• Furnishing quality, location quality

Atmosphere is important to convey value

• Peaceful, luxurious

• Show happy families

• Images used to convey benefit of value

Ex: property, homes, resorts

Inseparable

Production and consumption are simultaneous (hotel, restaurant)

Little opportunity for consumer to test service before use. After service performed can’t be returned (hair cut, doctor visit)

Lower risk by offering guarantees or warranties (hotel satisfaction guarantee)

Heterogeneous

More humans are needed to provide a service, more likely there is to be a difference or variability in service’s quality

Solutions:

• Techniology

• Training

• Automation

Perishable

Services are perishable in that they cannot be stored for use in future

Ski areas, airlines, cruise ships, movies, restaurants must find ways to deal with challeges of perishability

Empty seats mean permanent unrealized revenue

• Which room/seating capacity is needed (supply) to hangle audience needs on per firlm basis (demand)

Economic importance of service

Service account for nearly 80% of US GDP

As economic, technological, sociocultural environments change, so does demand for services. Developed countries increasing service oriented econ→ production cheper in other countries, high value placed on leisure/convenience, people demanding more specialized services

Developing service strategy using seven P’s

Product, price, place, promotion

Additional 3 P’s:

Presentation- can have an impact on consumer judgement of service quality

Personnel- in person transactions, more important for services than for goods

Processes- describe the actions required to get good or service to customer

Providing a good service

Ensure alignment between actual and perceived quality of service(s)

• Understand customer expectations for service quality→ knowledge gap→ management perceptions of consumer expectations

• Management perceptions of consumer expectations→ standard gap→ standards specifying how service should be delivered

• Standards specifying how service should be delivered→ delivery gap→how service is actually delivered

• How service is actually delivered→ communications gap (say and can’t deliver)→ prvide comms about service quality

Evaluation of service quality: five dimensions

How do customers measure quality?

• Reliability: ability to perform service accurately

• Responsiveness: willingness to help customers/prompt service

• Assurance: employees ability, knowledge, trust, etc.

• Empathy: expect provider to care about customers

• Tangibles: appearance of firm’s physical facilities

Management perception of service quality

• Reliability: give accurate time of service

• Responsiveness: bathroom dirty? Quick apologize/take action

• Assurance: server is able to address situations like wrong meal delivered

• Empathy: address guests by name

• Tangibles: rooms updated with latest tech

Marketing research: understanding customers

Marketing research provides means to better understand consumers’ service expectations and perceptions of service quality

Research can be extensive and expensive, or can be integrated into firm’s everyday interactions with customers

Voice of customer (VOC) program: collects customer inputs and integrates them into managerial decisions

Zone of tolerance: refers to area between customers’ expectations regarding desired service and min level of acceptable service

Zone of tolerance

Measure how well firms perform on five service quality dimensions

Have range of acceptable outcomes

Airline ex:

• Prefer aisle seat

• Will accept window seat

• Won’t accept unassigned seating (middle seat)

Service quality, customer satisfaction, and loyalty

Good service quality leads to satisfied and loyal customers

Post-purchase evaluation leads to satisfaction, dissonance, or loyalty

Satisfaction leads to loyalty!

Dissonance leads to poor reviews and lost customer

• However dissonance could just be passing emotion and could be overcome

Listening to customers and involving them in service recovery

Customers caxn get emotional service failure

Often customers just want someone to listen

Finding fair solution

Distributive fairness: pertains to customer’s perception fo the benefits he or she received compared with costs (inconvenience or loss)

Procedural fairness: refers to perceived fairness of process used to resolve them

Even if they receive solutions that seems fair, when consumers must work hard to achieve it, their low procedural fairness perceptions may cause them to believe they are being punished for receiving bad service

5 Cs of pricing

Company objectives, customers, costs, competition, channel members

Four pricing orientation (company objectives)

1. Profit orientation: goals should spill down to price strategy, pricing should support firm to reach goals. Do not use values as considerations but focus on generating set level of profit from each sale

• Risk: does not take into consideration value customers have for product

• Target return: company wants 44% profit margin on product sold

• Target profit: company wants to deliver $30k/month in profits

• Max profits: co. wants to deliver max profits possible

2. Sales orientation: focus on increasing sales, not profit margin. Premium pricing may be pursued. More concerned with overall market share. Adopted to establish position in market by getting most price sensitive consumers to change brands

3. Competitor orientation: common among smaller firms that lack experience in setting prices. Non-market leader firms also use it to signal are similar to market leader

• Competitive parity: prices similar to competitors

• Status quo pricing: only changes price to meet competitors’ prices

• Value not directly part of pricing strategy

4. Customer orientation: how firm can add value to tis products/services. Match prices to customer expectations. ‘No haggle’ prcing seeks to set fair price representing costumer’s perceived value

Customers

How many units will a customer demand during a specific period of time at different prices?

Based on assumptions that everything else remain unchanged

Knowing demand curve enables you to see relationship between price and demand

Price elasticity of demand (customers)

Measures how changes in price affect quantity of product demanded. It is ratio of percentage change in quantity demanded to percent change in price

Elastic (price sensitive products)

Inelastic (price insensitive products)

Consumers less sensitive to price increases for necessities

Price elasticity of demand=% change in quant demanded/% change in price

Dynamic pricing (individualized pricing)→ customers

Also called real-time or surge pricing, an approach to setting costs for product or service that is highly flexible

Goal of dynamic pricing is to allow co. that sells goods or services to adjust prices on fly in response to market demands

Factors influencing price elasticity of demand (customers)

Varies across different products and different points along demand curve, as well as change overtime

Income effect- people’s income decreases/increase their spending behavior change

Substitution effect- consumer ability to sub other products for normal brand

Cross-price elasticity- price change of product A that was demanded is dependent on a price change in dependent Product B (ex: you buy printer on sale, but now forced to buy expensive ink)

Costs

Price must cover cost of item

Variable cost: vary with production volume

Fixed cost: unaffected by production volume

Total cost: sum of variable and fixed costs

Breakeven analysis and decision making (costs)

Total variable costs= variable cost per unit * quant

Total cost=fixed costs+total variable cost

Total rev=price*quant

Profit margin=total rev-total costs

Break even point=fixed costs/ contribution per unit

Break-even point in units= fixed costs/ (selling price per unit-variable cost per unit)

Competition

Examples:

Monopoly- one firm control market (public utilities) → less price comp, fewer firms

Oligopolistic comp: handful of firms control market (Cable TV firms)→ more price comp, fewer firms

Monopolistic comp: many firms sell differentiated products at different prices (watch manufacturers) → less price comp, many firms

Pure competition: many firms sell commodities for same price (any consumer package good)→ more price comp, many firms

Channel members

Channel members- manufacturers, wholesalers, retailers- have different perspectives when it comes to setting price strats

Developing price that allows channel members to earn requisite profits requires careful planning

Pricing strategies

Long-term appraoch to setting prices broadly in an intergrative effort based on five c’s of pricing

Commonly used:

1. Everyday low pricing

2. High/low pricing

3. New product strategies

Everyday low pricing (EDLP)

Promises to consumers a low price without need to wait for sale price events or comparison shopping

• Consumers: reduces search costs

• Adds value

• Firms: saves effort and expense needed to mark down prices

Can be done to skip middleman or distributor

High/low pricing

Relies on promotion of sales

Appealing to biz cause start attract two different segments:

• Price insensitive customers (when price is high)

• Price sensitive customers (when price low)

New product pricing strategies

Penetration pricing: set initial price low for intro of new product or service. Good if cost of production will decrease with quant produced (economies of sales)

• Pros: creates customer base quickly, builds market share, quick profits, discourages competitor from entering market

• Cons: sacrifices higher profits (low margins), firm has to keep up with high demand, signaling problem: low price a low quality- may not create loyal customer base

Price skimming: set a higher price to appeal to those segments of consumers who are willing to pay a premium price to ahve the innovation firm

• At first high prices→ target consumers willing to pay premium to have innovation first

• When market saturated: lower (skim) prices, target most price sensitive segments

Additional pricing tactics

Consumer (B2C) oriented:

Markdowns, quant discounts, seasonal discounts, coupons, rebates, leasing to purchase, price bundling, leader pricing

Business (B2B) oriented:

Seasonal discounts, cash discounts, off-invoice allowances, quantity discounts

Deceptive or illegal price advertising

If merch is placed on retail floor and immediately put on sale, it is considered to be deceptive because merch was never sold at higher price, but consumers expected to believe they are receiving significant discount

Deceptive references prices, loss-leader pricing, bait and switch

Predatory pricing

Prices set low with intent to drive competitor out of biz→ illegal, difficult to prove

Would need to set records that show intent or have interviews of those who can verify itnent

In addition, must show taht co. charged prices lower than avg costs

Illegal under Sherman Antitrust Act and Federal Trade Commission Act

Price discrimination

The Robinson-Patman Act does not apply to sales to end consumers, at which point many forms of price discrimination occur

Not always illegal, different rules in B2B and B2C markets, fed law does not apply to sales to end consumers

Ex:different prices based on age, sec