What Is Market Behavior?

Market behavior refers to various decision-making actions taken by an enterprise on the basis of full consideration of the market's supply and demand conditions and other corporate relations; or it is an adjustment action taken by an enterprise to meet market requirements in order to achieve its stated goals.

Market behavior

Right!

Market behavior refers to various decision-making actions taken by an enterprise on the basis of full consideration of the market's supply and demand conditions and other corporate relations; or it is an adjustment action taken by an enterprise to meet market requirements in order to achieve its stated goals.

Under the conditions of a market economy, the purpose of corporate market behavior is to maximize profit. Generally, market behavior is divided into three categories: price behavior, non-price behavior, and organizational adjustment behavior. ^[1]

The content of market behavior of commodity producers and operators is very complex and constantly changing. But its behavior is to achieve

The content of the market behavior of market operators is very complex, and under different political and economic situations, there are different

Corporate market behavior and its types

1. Meaning: Enterprise market behavior, that is, the actions taken by enterprises in the market to continuously adjust their strategies and tactics in order to achieve their goals (such as maximizing profits and higher market share).

2. Type: The market behavior of enterprises mainly includes market competition behavior and market coordination behavior. Market competition behaviors include pricing behaviors with the basic characteristics of controlling and influencing prices; M & A behaviors with the main characteristics of property rights changes and organizational adjustments; promotion behaviors with the purpose of improving competitiveness and expanding the market. (The former is price behavior; the latter two are non-price behaviors) Market coordination behaviors are mainly corporate cooperation and competition behaviors, including cartels, corporate strategic alliances, etc. (both price cooperation and non-price cooperation behaviors)

Corporate pricing behavior

1.Influencing factors of corporate goals and pricing behavior

[1] Enterprise goal theory: satisfactory profit rate theory; single objective maximization theory; multi-objective utility maximization theory;

[2] Theoretical model of price determination: price determination in a completely monopolized market; price determination in a completely competitive market; price determination in a monopolistic competitive market; price determination in an oligopoly market.

2. Pricing behavior in the oligopoly market: The theory of industrial organization mainly studies the pricing behavior in the oligopoly market.

(1) Oligarchy behavior: [1] joint production; [2] joint pricing; [3] conspiracy.

(2) Oligopoly pricing model: [1] Cournot model: [2] Bertrand model [3] Stockerberg model

(3) Predatorypricing.

(4) Limiting pricing (prevention of pricing).

(5) Price discrimination (differential pricing).

M & A behavior

1. M & A and its types

Horizontal (horizontal) mergers and acquisitions; vertical mergers and acquisitions; hybrid mergers and acquisitions.

2. Motivation for corporate mergers and acquisitions

Motivations for M & A companies: obtain synergies (1 + 1 & gt; 2 effect) and economies of scale; improve market competitiveness and dominance; reduce or break through barriers to entry; reduce or diversify asset management risks; simply expand scale or pursue profits. Motivation of the acquired company: reduce operating risks; avoid bankruptcy; recover capital

3. The impact of mergers and acquisitions: synergies; reduction of transaction costs; market structure effects: increased market control and the emergence of monopoly structures; the formation of barriers to entry

4. Operation mechanism and strategy of Chinese enterprises M & A

Corporate promotion

1. Product differentiation

Advertising behavior

3. Diversified operation:

4. Management specialization and diversified options:

[1] The core issue emphasized by specialization is the synergy of the production process.

[2] The core issue of diversification is the diversification of risks.

[3] Enterprise professionalization and business diversification are two different and contradictory business strategies.

Corporate market coordination

1. Definition and classification: Enterprises in the same market take coordinated actions for certain common goals. It is generally not regulated by explicit agreements and contracts, but in the form of secret collusion. Market coordination behavior is divided into price coordination behavior and non-price coordination behavior. Non-price behaviors are dominated by product collusion. Here we mainly discuss price coordination behavior.

Cartel

3. Price leadership

4, market structure and price coordination behavior.