COMMERCE 2MA3 Chapter Notes - Chapter 13: Demand Curve, Dynamic Pricing, Price War
19 Jun 2016
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Price is the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service. You should know now ;) i don"t . Price as an indicator of value: from consumer"s perspective, price is often used to indicate value when it is compared with the benefits of the product. Value is defined as the ratio of perceived benefits to price. Value pricing: increase product or service benefits while maintaining or decreasing price, e. g. tim horton"s. Consumers may not always perceive lower prices as poor value or poor quality as it is sometimes the result of intense competition. Price in the marketing mix: profit = tr tc, therefore, price has a direct effect on a firm"s profits. 6 steps involved in the process organizations go through in setting prices: Indentifying price constrains: the factors that limit the latitude of prices a firm may set.
