MKT 320F Chapter Notes - Chapter 17: Oligopoly, Price Fixing, Price Discrimination
Document Summary
-these objectives drive decisions about key pricing policies: how flexible prices will be. 3: how transportation costs will be handled the level of prices over the product life cycle to whom and when discounts and allowances will be given. The price equation: price equals something of value: -price: the amount of money that is charged for something of value. -almost every business transaction in our modern economy involves an exchange of money the price for something. -target return objective: sets a specific level of profit as an objective; states usually as a percentage of sales or of capital investment. -has administrative advantages in a large company; performance can be compared against the target. -some aim for satisfactory returns; want returns that ensure the firm"s survival and convince stockholders they"re doing a good job. -profit maximization objective: seeks to get as much profit as possible; rapid return on investment possibly.
