MGTA02H3 Chapter Notes - Chapter 7: Psychological Pricing, Pricing Strategies, Price Skimming

• School: UTSC
• Department: Management (MGT)
• Course: MGTA02H3
• Professor: Chris Bovaird

Document Summary

It is an important element of the marketing mix because it influences both consumer demand for a product and company profitability. Consumers want products that satisfy their needs, and they want them to be available in the right places but they also look for the lowest prices. Cannot set the price without understanding your cost. Markup: you need to be able to define, explan markup and calculate the markup. Break even analysis: price, cost and quantity. In pricing, managers decide what the company will receive in exchange for the products. Company often price products to maximize profits but they also hope to attain other pricing objectives when selling their products. Pricing decisions are also influenced by the need to survive in the marketplace, by the social and ethical concerns and even by corporate image. You must cover cost of good sold. (the costs of making the products). The only way to set prices is to understand the cost.