MKT 100 Chapter Notes - Chapter 11: Geographical Pricing, Price Discrimination, Experience Curve Effects

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Asif Salam

Document Summary

Profit orientation target profit pricing strategy by firms when have profit goal as overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit. Belief that increasing sales will help the firm more than will increasing profits. E. g. new health club set lower membership fee, accept less profit at first. Based on the premise that the firm should measure itself primarily against its competition. Competitive parity strategy of setting prices that are similar to those of major competitors. Pricing orientation that explicitly invokes the concept of customer value and setting prices to match consumer expectations. Very high priced state of the art prod/serv full anticipation of limited sales. Designed to enhance company reputation/image, increases value. Paradigm speakers as low as per pair to high end . No haggle price structure to make purchase process simpler/easier for consumers lowering overall price which increasing value (car companies)