Management and Organizational Studies 2320A/B : Pricing Ch 11.docx

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

Document Summary

Price the amount of money charged for a product or service, the sum of values customers exchange for the benefits of having or using the product or service. Only element in the marketing mix that produces revenue. Plays a key role in creating customer value and building customer relationships. Value-based pricing setting prices based on buyers perceptions of value rather than on the seller"s cost, price is considered along with other marketing mix variables before the program is set. Good-value pricing offering just the right combination of quality and good service at a fair price. Everyday low pricing (edlp) involves charging a constant everyday low price with few or no temporary price discounts. High-low pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. Value-added pricing attaching value-added features and services to differentiate a company"s offers and charging higher prices.