BUSI 2208 Lecture Notes - Demand Curve, Marketing, Online Auction
22 Dec 2012
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Document Summary
Chapter 12 pricing concepts and strategies: establishing value. Price the overall sacrifice a consumer is willing to make to acquire a specific product or service. This includes the money paid in exchange for the item but also other sacrifices monetary or non monetary. Such as the value of time and energy spent acquiring item or the shipping and travel costs. Consumers judge the benefits a product delivers against the sacrifices necessary to obtain it. Key is to match product or service price with the consumers value perceptions. A price set to low may signal poor quality or performance, or other negative attributes. Consumers don"t necessarily want a low price all the time for all products, they want high value for their money which may come at a high or low cost. However consumers usually rank price as one of the most important components of their purchase decision.
