The following appeared in an announcement iued by the publiher of The Mercury, a weekly newpaper. Since a competing lower-priced newpaper, The Bugle, wa tarted five year ago, The Mercury circulation ha declined by 10,000 reader. The bet way to get more people to read The Mercury i to reduce it price below that of The Bugle, at leat until circulation increae to former level. The increaed circulation of The Mercury will attract more buinee to buy advertiing pace in the paper. Dicu how well reaoned... etc.
A newpaper publiher i recommending that the price of it paper, The Mercury, be reduced below the price of a competing newpaper, The Bugle. Thi recommendation repond to a evere decline in circulation of The Mercury during the 5-year period following the introduction of The Bugle. The publiher line of reaoning i that lowering the price of The Mercury will increae it readerhip, thereby increaing profit becaue a wider readerhip attract more advertier. Thi line of reaoning i problematic in two critical repect.
While it i clear that increaed circulation would make the paper more attractive to potential advertier, it i not obviou that lowering the ubcription price i the mot effective way to gain new reader. The publiher aume that price i the only factor that caued the decline in readerhip. But no evidence i given to upport thi claim. Moreover, given that The Mercury wa the etablihed local paper, it i unlikely that uch a ma exodu of it reader would be explained by ubcription price alone.WWw.hAOZuowEn.com