BU352 Lecture Notes - Lecture 11: Loss Leader, Price Skimming, Decision-Making
Document Summary
Bu352 chapter 11: pricing concepts and strategies establishing value. This occurs when price elasticity is less than -1. Inelastic: when small changes in price will not generate large changes in quantity demanded. This occurs when price elasticity is greater than -1: the pe of demand usually changes at different points along the demand curve, unless it is straight, factors influencing price elasticity of demand. Income effect generally as peoples income increases, their spending behavior changes. A that occurs in response to a percentage change in price of product b (ex. Changes in their demand are negatively related: costs firms must understand their cost structures so they can determine the degree to which their products will be profitable at different prices. Pricing tactics: pricing tactics: short-term methods, in contrast to long-term pricing strategies, used to focus on company objectives, customers, costs, competition, or channel members;
