The paper “ Correlation between Market Share, Product Quality, Customers Preference and Pricing Strategy in the Regions” is a brilliant variant of assignment on marketing. Market share in an organization is heavily determined by the price of the commodity in many cases. Competitors price affects the amount of commodity an organization could sell in a market. In addition to that, there has been a negative relationship between the market share and the price of the commodity. Different formats of wine products have different market shares and prices (Paley, 2005). It is indicated that the format with the highest market share is selling most of its products at a lower price than the average price.
Different format's average price is 6.2773. at the price 2.99, the format 75 has the highest market share in the market with quantity bought being 407 and a price equal to $1.99 the same format sold 403 products. The formats with low market share its products were highly-priced. Format 75 has also a higher market share at prices higher than market share. As it can be evidenced that format 75 has a higher market share as indicated in table 1 below.
The table clearly shows that Mr. Skinner's arguments are not true. Though the format 75 market share is very high at prices lower than market share. The product seems to be of very high quality as it is prepared at different prices in the market. Different brand formats might have been advertised fully in different regions hence capturing high market share in the market (Alaxandris & Rodoula, 2012). The relationship between prices and format of the product affects market share in the market as price is seen as the major determinant of demand in the market. b).
Different regions have different market share depending on the customer's preference and pricing strategy in the regions. It is anticipated that Some products are priced higher in different regions depending on the chain of distribution. Different regions, on the other hand, have different resources that could affect the product price. Resource availability affects the market supply and demand of a certain brand in the market (Alaxandris & Rodoula, 2012). Excessive supply of brands reduces the brand prices; therefore different regions end up having different brand share at different prices.
Product competition among different brands makes different regions price brands differently hence it is very easy for each and every brand to attract different prices in different regions (Alaxandris & Rodoula, 2012). It is without a doubt that products which are not entitled to price control cost higher in regions which and far away from the manufacturing plant as the increased transport cost is transferred to the consumer. This could be the reason behind having different prices in different regions. Wine brands are priced differently in different regions hence impacting the market share of the wine products in such regions (Alaxandris & Rodoula, 2012).
Regions, whereby the wine is priced low, have higher market share compared to regions where the wine is sold at a higher price. Different regions have different market share though the market share is higher at the prices lower than the average price in the market. At a price of 0.99 in the McLaren Vale region the quantity purchased was 498 hence has the highest share compared to all other regions.
The quantity bought depends on the price as prices are inversely related to quantity purchased not unless the product is a luxury. This is because shoppers move from one region to another as a way of looking for cheaper products.