MKT 300 Lecture Notes - Lecture 12: Profit Maximization, Customer Satisfaction, Status Quo

• School: University of Alabama
• Department: MKT
• Course: MKT 300
• Professor: montavon

Document Summary

Development of pricing objectives: goals that describe what a firm wants to achieve through pricing, survival, temporary low prices. Profit-oriented pricing: profit maximization, expand revenue relative to costs, doesn"t always mean price increases. Invest in boosting customer satisfaction: cut costs: operate more efficiently, limitations, efficient operations, customer satisfaction. Ignore profits, competition, marketing environment: often utilized in short-term, maximize cash, uncertain future, sell off excess inventory. Status quo pricing: maintain existing prices or meet competition, common industries with established price leader, advantages, little to no planning, passive policy, disadvantages. Other determinants of price: price/quality relationship: purchase decision involves consumer uncertainty, reliance on high price to predict high quality, this effect is stronger for some products than for others. Assessment of the target market evaluation of price. Importance of price varies depending on: type of product, target market, purchase situation, marketers should know. Importance of product to customers: customers quality expectations, customers value expectations.