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Linn: General Theory of Marketing   [pdf]
1.   The Crucial Definition
2.   The First Deduction
3.   The First Postulate
4.   The Second Postulate
5.   The Second Deduction
6.   The Third Deduction
7.   The Third Postulate
8.   The Fourth Postulate
9.   The Fourth Deduction
10.  The Fifth Deduction
Summary
Appendix 1
Appendix 2

 


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10. The Fifth Deduction: The commercial product is an equation

From the Price-Value Hypothesis follows that the object of the transaction – the product – has to be explained with two descriptions according to the principles for an equation. One showing the properties and features the seller/supplier has to offer to be able to ask a certain price enabling him to sell a certain quantity; the Supplier’s Product. One showing what benefits these correspond to in the buyer’s evaluation; the Buyers’ Product. This model is called the commercial Transaction Model. The price factor in the Supplier’s Product has to include all the costs of the acquisition, which the buyer is aware of and is able to judge, but not hidden or unforeseen actual or future costs. Other sacrifices for the acquisition should be included in the ”equation” as negative entries in the evaluation of the buyer. The condition for completing the transaction is that the buyer evaluates the product to equal or more than the price asked (See 3.!).