RMG 200 Lecture Notes - Lecture 8: Geographical Pricing, Digital Single-Lens Reflex Camera, Price Discrimination

• School: Ryerson University
• Department: Retail Management
• Course: RMG 200
• Professor: Janice Rudkowski

Document Summary

Lecture 8 retail pricing and loyalty (crm) Pricing: value: relationship of what a customer gets (goods/services) to what he or she has to pay for it, value = perceived benefits/price, different for consumers and can be based on quality, price, service, convenience. Considerations in setting price: price sensitivity, competition, legal constraint, cost. Initial markup = retail selling price initially placed on the merchandise cost of goods sold. Charge the same price all the time. Set prices between regular non-sale price and deep discount sale prices. May consider it as everyday stable prices : high/low pricing: Regular prices are higher than edlp competitors, but merchandise frequently on sale at lower prices. Break-even quantity: a technique that evaluates the relationship between total revenue and total cost to determine profitability at various sales levels (new product launches), bep quantity = fixed cost/unit price unit variable cost. A price reduction from the initial retail price. Generate cash to buy better selling merchandise.