Management and Organizational Studies 2320A/B Chapter 11: Chapter 11 Pricing Concepts and Strategies Establishing Value.docx

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: John White

Document Summary

Chapter 11: pricing concepts and strategies: establishing value. Consumers judge the benefits a product delivers against the sacrifice necessary to obtain it, and then make a purchase decision based on this overall judgement of value. Price is the only element of the marketing mix that generates revenue, every other element in the marketing mix may be perfect but with the wrong price, sales simply will not occur. Price communicates to the consumer more than how much a product or service costs; it can signal quality, or lack thereof. Profit orientation: a company objective that can be implemented by focusing on target profit, pricing, maximizing profits, or target return pricing. Target profit pricing: a pricing strategy implemented by firms when they have a particular goal as their overriding concern" uses price to stimulate a certain level of sales at a certain profit per unit.