MKTG 300 Chapter Notes - Chapter 11: Iphone 7, Price Discrimination, Accounts Receivable

• School: University of San Diego
• Department: Marketing
• Course: MKTG 300
• Professor: O'' Neal Carlton

Document Summary

Abbreviations: - change; comp - company; mktg - marketing; g/s - goods & services; p/s - products & services. Market-skimming pricing (price skimming) (cid:314) setting a high initial price for new product to skim max revenues layer by layer from the market; company makes fewer but more profitable sales (ex: apple selling iphone 7 for ) Market-penetration pricing (cid:314) setting a low price for new product to attract a large # of buyers & win a large market share. Ex: in-n-out tries to make a few bucks here and there, but sell a whole bunch. Product line pricing (cid:314) setting price steps btwn various products in a product line based on cost differences btwn products, customer evaluations of different features, and competitors" prices (establish perceived value differences to support price diff) Trying to get each person to pay their max amount (called 1st degree price discrimination - based on personal taste)