MGTA02H3 : MANAGEMENT II - CHAPTER 7
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MGTA02H3 Full Course Notes
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Influences consumer demand for a product and company profitability. Pricing: deciding what the company will receive in exchange for its product. Price products to maximize profits: also attain other pricing objectives: goals that producers hope to attain in pricing products for sale, corporate image. Sell many units: miss opportunity to make additional profit -> may lose money. Too high: make large profit per item. Companies try out new prices as they try to increase profits: times of higher demand -> higher prices. Calculating profits: receipts versus costs for materials and labour to create the product + capital resources + costs of marketing. Pricing sales on the internet -> consider different kinds of costs and different forms of consumer awareness. Web -> more direct link between producer and consumer: avoid costs of wholesalers and retailers. Easier comparison shopping done by customers -> lowered process to stay competitive.
