BU352 Lecture 12: Chapter-11-_-Pricing-Concepts-Strategies-Establishing-Value
Document Summary
Price: overall sacrifice a consumer is willing to make to acquire a specific product or service. Chapter 11 pricing concepts & strategies: establishing value (including travel or time costs) A great but overpriced product can be judged as low in value and may not sell as well as an inferior but well-priced item. A price set too low may signal low quality, poor performance, etc. We (cid:272)a(cid:374)"t define price without referring to the product or service associated with it. Price is the only element of the marketing mix that generates revenue. Every other element in the marketing mix may be perfect, but with the wrong price, sales simply will not occur. Consumers usually rank price as one of the most important factors in their purchase decisions. Price is the most challenging of the four ps to manage; often the least understood.
