MGT252H5 Chapter Notes - Chapter 10: Marketing Mix, Economy Class, Ebay
Document Summary
Note: lo 1, lo 2, lo 6, and lo 7 are not included! In the narrowest sense, price is the amount of money charged for a product or a service. More broadly, price is the sum of all the values that customers give up to gain the benefits of having or using a product or service. Historically, price has been the major factor affecting buyer choice. Price is the only element in the marketing mix that produces revenue; all other elements represent costs. Price is also one of the most flexible marketing mix elements. Market-skimming pricing (or price skimming) involves setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales. Many companies that invent new products do this.
