ADMS 2200 Chapter Notes - Chapter 16: Pricing Strategies, Marginal Revenue, Market Price

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: Jean Adams

Document Summary

Pricing objectives classified into four major groups. Must set price of its products with profits in mind: even nonprofit must consider expenses and price. Rational behavior will result in effort to maximize gains and minimize losses: marketers estimate profits by looking at. Elaborate calculations based on predicted future sales. Must have good perception of product"s values. Results when rivals battle for leadership position. Analyzing relationship among cost, sales price, and sales volume: 10% increase in price but 11% decrease in sales. Point at which additional revenue gained by increasing price equals increase in total cost. Short or long-run goals stated as percentage of sales or investment. Marketers must set tro: volume objectives. Set minimum price, and just try to obtain as many sales as possible. Goal of controlling a specified minimum share of market for a firm"s g//s: can increase price of the product without declining in.