BUS 343 Chapter Notes - Chapter 9: Yield Management, Target Costing, Customer Satisfaction
25 May 2011
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Yes, but what does it cost : key pricing strategy decisions, price objective pricing policy/strategies price points & tactics implementation: Developing pricing objectives: pricing objectives must support the broader objectives of the firm. Sales or market share objectives www. notesolution. com: sales or market share objective pricing products to maximize or to attain a desired sales or market share. If obviously competitive advantage, matching price with other firms might already be enough. Customer satisfaction objectives: customer satisfaction (and retention) pricing that is intended to maximize customer satisfaction and retention, firms that believe focusing on short term profits will lose customer long term. Low price can communicate a different image such as good qua. ity product that is reasonably priced. Pricing strategies to achieve profit objectives: three main sets of strategies are based on cost, demand, and experience. Skimming pricing: setting a skimming price for a new product, charging a very high, premium price for a new product.
