MGTA01H3 Chapter Notes - Chapter 7: Price Fixing, Fixed Cost, Variable Cost

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Price influences both consumer demand for a product and company profitability. Consumers want products that satisfy their needs, and they want them to be available in the right places, but they also look aggressively for the lowest prices possible. Pricing deciding what a company will receive in exchange for its product. Companies often price products to maximize profits but they also hope to attain other pricing objective. Pricing objective goals that producers hope to attain in pricing products for sale. Some firms want to dominate the market or secure high market share. Pricing decisions are also influenced by the need to survive in the marketplace, by social and ethical concerns, and even by corporate image. If prices are set too low, the company will probably sell many units of its products, but it may miss the opportunity to make additional profit on each unit and may in fact lose money on each exchange.