Management and Organizational Studies 2320A/B Study Guide - Rolex, Profit Margin, Geographical Pricing

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: All

Document Summary

Price: amount of money charged for a product/service, or the sum of the. Values that customers exchange for the benefits of having o using the product or service. Historically: price is a major factor. now still firm"s market share and profitability. Understanding customer value of a product/service --> before the marketing programme is set. Companies --> hard to measure the value customers will attach to a product. Service- different consumers and different situations: good value pricing: right combination of quality/ service at a fair. Price: less expensive version of established brand name (armani (cid:0) Armani exchange: retail level: eclp every day low pricing (constant low price with few temporary discount) walmart, high-low pricing: higher pricing but frequent promotions (vs ) prices) paid. Cost-based pricing setting prices based on cost for a) producing, b) distributing, c) selling the product plus a fair rate of return for effort and risk.