4. Total-expenditure effect: Buyers are less price sensitive the lower the expenditure is as a part of their total
responsibility.
5. End-benefit effect: Buyers are less price sensitive the
smaller the expenditure is to the total cost of the end
product.
6. Shared cost effect: Buyers are less price sensitive
when part of the cost is borne by another party.
7. Sunk-investment effect: Buyers are less price sensitive when the product is used in conjunction with assets
previously purchased.
8. Price-quality effect: Buyers are less price sensitive
when the product is assumed to have more quality, prestige, or exclusiveness.
9. Inventory effect: Buyers are less price sensitive
when they cannot store the product.
In today’s business environment hammered by poor
overall economic conditions on one end and the electronic ability of our customers to quickly determine their
quality and price and ultimate value options, these outlined considerations must be made thoroughly but also
very quickly for you to maintain or to capture paint and
coatings market position.
Those who can manage these elements in a compressed
time atmosphere will have the best chance of success. CW
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Successful Strategies for Decision-Makers
CHEMARK
THE
CHEMARK
CONSULTING
GROUP
Core Competencies
Value Implications for CLIENTS
• Value Systems Analysis
• Customer Relationship
Management
• Market Integrity Assessment
• Position, Growth,
Competitive, Image Analysis
• New Business Development
• Market Research
• Strategy Business Assessment
& Planning
230 N.Bennett St., Ste. 3 • Southern Pines, NC 28387
910-692-2492 • E-mail: phillips@chemarkconsulting.net
Web Site: chemarkconsulting.net
Partner Offices: Dorking, ENG • Research Triangle Park, N • Detroit, MI
Chemark Consulting Group is
a 30-year-old management
consulting firm that
concentrates on tactical &
strategic activities surrounding
all industries pertaining to coat-
ings, adhesives, sealants,
resins, polymers and additives.
Since 1975, its global clients
include product formulators,
raw materials and application
equipment suppliers and
end-users.
COATINGS
ADHESIVES
SEALANTS
&
SPECIALTY
CHEMICALS