MKT 3305 Lecture Notes - Lecture 10: Image Editing, Demand Curve, Pricing Strategies
Document Summary
Price is the assignment of value, or the amount the consumer must exchange to receive the offering. Includes money, goods, services, favors, votes, or anything else that has value to the other party: opportunity costs must also be considered, opportunity costs refers to something that the consumer has to give up in order to obtain. Who determines" the final price? something else. Impactful advertising (promotion: easier access (place, price elasticity of demand, price elasticity is the percentage change in unit sales that results from a percentage change in price. In absence of reliable demand estimates and pricing norms, common pricing tactics include : skimming price, penetration pricing, trial pricing. Develop pricing tactics : pricing for individual v multiple products. Pricing for individual products: two-part pricing, payment pricing, decoy pricing. Pricing for multiple products: price bundling, captive pricing. How do you know whether you"ve charged too much or not enough: pricing moves and countermoves require ongoing planning.
