COMM 131 Chapter Notes - Chapter 10: Marketing Mix, Price Discrimination, Geographical Pricing

• School: Queen's University
• Department: Commerce
• Course: COMM 131
• Professor: Ethan Pancer

Document Summary

Chapter 10: pricing: understanding and capturing customer value. It is the amount of money charged for a product or service, or the sum of the values that customers exchange for the benefits of having/using the product or service. One of the most flexible of the four p"s can change quickly: at the same time it is also the number one problem facing marketing executives. Customer perceptions set the price ceiling, the cost base sets the price floor. Setting the price based on buyers" perceptions of value rather than on the seller"s costs: understanding how much value customers place on the benefits they receive from the product and setting a price that captures this value. This strategy involves assessing customer needs and value perceptions, setting a target price based on those perceptions, this info drives decisions about what costs can be incurred, and the resulting product design price = perceived value.