Textbook Notes (368,449)
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MGTA02H3 (363)
Chapter 7

Chapter 7 textbook notes

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Department
Management (MGT)
Course
MGTA02H3
Professor
Chris Bovaird
Semester
Winter

Description
Chapter 7Pricing objective goal that producer hope to get in pricing product for saleProfit max objective too low may miss opportunity of extra profit too high may cause excess inventory and reduce production labour material capital equipment cost of marketingincludespricing for ebusiness objective lower cost because no intermediate and compare competitor pricesmarket share objective low price to establish market sharemarket share companys percentage of total market sales for a specific productother objectives when in a recession company want to surviveprice setting tools identify prices allow company to reach to objectivecost oriented pricing consider desire to make profit and cover all costMarkup percentagemarkupSales pricemarkup percentage is 30 imply that 30 cents will be gross profitBreak even analysis cost volume profit relationshipvariable cost change with the number of goods product and soldfixed cost unaffected by the amount producedBreak even analysis assessment of how many must be sold at given price before to make a profitbreak even point the number of unit must be sold at given price before cover variable and fixed costBEP unit total fixed cost Pricevariable costPricing strategiespricing existing product pricing above prevailing market price imply higher quality belowimplyacceptable qualityPricing leadership dominant firm in the industry establish price and other followex gas differ little in quality compete through advertisement or personal selling not pricePricing fixing illegal process of producer agree what pricewwwnotesolutioncom
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