Management and Organizational Studies 1021A/B Study Guide - Final Guide: Snapple, 24Hours, High Visibility

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: Sarah Ross

Document Summary

Price: money or other considerations exchanged for the ownership or use of a good or service: demand-oriented approach, cost-oriented approach, profit-oriented approach, competition-oriented approach. Examples: penetration, set a low initial price on a new product to appeal to the mass market, appeals to consumers who are price sensitive, discourages competition. Example: nintendo wii: skimming, set the highest initial price that consumers really desiring a product are willing to pay, then lower the price once demand of these customers is satisfied. Driven by manufacturing costs and labour costs. Examples: cost-plus, summing the total unit cost of providing a product and adding a specific amount to the cost to arrive at a price. Example: when building a house, look at the costs of raw material and then additional costs and add the amount to cover profit. Examples: target profit, a firm sets an annual target of a specific dollar amount of profit, can be difficult to determine.