BU352 Chapter Notes - Chapter 11: Tiffany & Co., Pricing Strategies, Blu-Ray
Document Summary
Chapter 11 - pricing concepts and strategies: establishing. Price = the overall sacrifice a consumer is willing to make to acquire a specific product or service. Usually money but can include the non-monetary such as the time needed to travel to the store. You must match the product/service with the customer"s value perceptions. Don"t price it too high or too low. Customers want high value, not necessarily low price. Price is what generates revenue (must focus on this part of the marketing mix because if you mess it up, even if the rest is perfect you will not get sales) Price is not only a sacrifice but also an information cue - customers use price to judge the quality. Profit oriented - focus on target profit pricing, maximizing profits, or target return pricing. Sales oriented - set prices low to maximize sales and take sales from competitors.
