MKTG 2800 Chapter Notes - Chapter 14: Price War, Price Discrimination, Geographical Pricing
Document Summary
Step 3: determine cost, volume, and profit relationships. Noncumulative based on size of individual purchase order. Cumulative apply to accumulation of purchases or product over a given time period. Step 5: set the list or quoted price. Fixed price policy setting one price for all buyers of a product or service. Dynamic pricing policy setting differences prices for products and services in real time in response to supply and demand conditions. Product line pricing setting the prices for all items in a product line. Price war successive price cutting by competitors to increase or maintain their unit sales or market share. Step 6: make special adjustments to the list or quoted price. Quantity discounts reductions in unit costs for a larger order. Trade in allowances price reduction given when a used product is accepted as part of the payment on a new product.