MOS Notes - Feb 1.docx

10 Pages
91 Views
Unlock Document

Department
Management and Organizational Studies
Course
Management and Organizational Studies 1021A/B
Professor
James O' Brien
Semester
Winter

Description
MOSTextbook Notes Chapter 9PricingNature and Importance of Price What Is a PriceFrom a marketing viewpoint price is the money or other considerations including other goods and services exchanged for the ownership or use of a product o The practice of exchanging goods and services for other goods and services rather than for money is called barterFinal priceList priceIncentivesAllowancesExtra feesPrice as an Indicator of ValueValue is the ratio of perceived benefits to price oro ValuePerceived benefits Price o This relationship shows that for a given price as perceived benefits increase value increasesValue pricing is the practice of increasing a products benefits while maintaining or decreasing pricePrice in the Marketing MixPrice has a direct effect on a firms profits This is apparent from a firms profit equation o ProfitTotal RevenueTotal CostPrice influences quantity sold Quantity sold influences costs efficiency of productionGeneral Pricing Approaches There are four common approaches to helping find an approximate price level to use as a reasonable starting pointDemandOriented ApproachesDemandoriented approaches emphasize factors underlying expected customer tastes and preferences more than such factors as cost profit and competition when selecting a price levelSkimming PricingA firm introducing a new product can use skimming pricing setting the highest initial price that those customers really desiring the product are willing to payPenetration PricingSetting a low initial price on a new product to appeal immediately to the mass market the exact opposite of skimming pricing
More Less

Related notes for Management and Organizational Studies 1021A/B

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit