BUS 343 Chapter Notes -Rigging, Substitute Good, Pricing Strategies
30 Jun 2013
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Price: the value that customers give up, or exchange to obtain a desired product. Bartering: the practice of exchanging a good or service for another good or service of like value. Operating costs: costs involved in using a product. Switching costs: costs involved in moving from one brand to another. Opportunity cost: the value of something that is given up to obtain something else. Profit objectives: pricing products with a focus on a target level of profit growth or a desired net profit margin see table 9. 1, 297. Sales or market share objective: pricing products to maximize sales or to attain a desired level of sales or market share. Competitive effect objective: pricing that is intended to have an effect on the marketing efforts of the competition. Customer satisfaction objective: pricing that is intended to maximize customer satisfaction and retention. Image enhancement objective: pricing intended to establish a desired image or positioning to prospective customers.
