MKT 100 Chapter Notes - Chapter 11: Price Skimming, Premium Pricing, Marketing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Laila Rohani

Document Summary

The five c"s of pricing: company objectives, customers, costs, competition, channel members. % change in qd / % change in price: elastic: price sensitive market, small price changes cause large changes in. Qd: inelastic: price insensitive market, small price changes do not cause large changes in qd. Channel members: channel members are manufacturers, wholesalers and retailers, grey markets employ irregular but not necessarily illegal methods; generally, it legally circumvents authorized channels of distribution to sell goods at prices lower than those intended by the manufacturer. Internal reference prices are price information stored in the consumer"s memory that the person uses to assess a current price offering perhaps the last price they paid or what they expect to pay. Odd prices: odd prices are prices that end in odd numbers, usually 9, such as . 99. The price-quality relationship: some consumers believe that a higher price means the best quality.