The paper “ Marketing Strategy Protecting the Schools against Threats, and a Correlation between Products with Lower Market Share and Higher Prices” is a great example assignment on marketing. Our General Manager with a very credible economic background was of the opinion that in the product category the brands with lower market shares would have higher average prices. However, being a market analyst I disagree with his opinion. Looking at the data set 1 that contains synthesized data on the detergents sold in terms of the number of sales and other statistics over a certain time period, I believe these data do not support the manager’ s opinion.
Applying the principles of data reduction that is; The Likelihood principle, The Sufficiency principle and The Equivalence Principle we find that his assumptions are wrong. Based on a description of a function of the parameter defined by the sample on observation, the Likelihood Principle consists of data on θ of which is accessible in the sample. The Suﬃciency Principle, on the other hand, endorses a technique of data reduction that preserves synthesized data about θ at the same time realizing a certain summary of the information.
Similar to the Sufficiency Principle, it is the Equivalence Principle that advocates for a data reduction that does not discard among others the vital aspects of the model (Paliwoda 2009). Products with lower market shares would not necessarily have higher average prices. I will base my explanations on the first data reduction method that is the Likelihood Principle which consists of data on θ of which is accessible in the sample. There are so many factors apart from the market share that would influence the price of the detergents.
Situational influences are the things that influence consumers that are independent of enduring consumers, brand, or product character. Situational influences can be classified into three categories which are time, place, and conditions. For example, if Biz detergent was under the time category specified in the form of time of year and day. This purchase would situational influenced by the holy month of Ramadan and my hours of fasting. The time of buying the detergent correlated with my breakfast time so it follows the rhythm of my circadian cycle (Adcock 2001). In addition, products with lower market shares might have lower average prices due to the fact that some purchases of products are determined by an aspect of the circadian cycle.
The motive of the purchase is associated with for example a study time that normally occurs during certain hours. The consumption of the particular detergent at this time increases the value of the product because of my need for it. This is opposed to if the purchase was made during the morning where there is no motive for such consumption.
Furthermore, in an exceptional circadian cycle consumption choice, because it affects my value of detergent to use for washing at that time, this would result in me purchasing the product at that time. On the other hand, my consumption choice would not have occurred if I have had no dire need to wash clothes. Additionally, a detergent advertisement on television earlier that day has turned on my emotions toward washing clothes that day. Therefore, there is an increased demand for the product that might have had a lower market share and hence would have lower prices (Paul, 1997).