BUS 343 Lecture Notes - Lecture 9: Target Costing, Dynamic Pricing, Geographical Pricing

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 343
• Professor: Lily Lin

Document Summary

It is also highly visible: consumers will take into account price when comparing productsc, price makes it easier for them to compare and make a decision. Setting price based on buyers" perceptions of value rather than on the seller"s cost: on consumers" perceived value, types of value-based pricing. Setting prices on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. Setting prices based on competitors" strategies, prices, costs, and market offerings: compare your products and prices to your competition, understand how strong your competition is, determine the level you want to compete at. Strategic: new product pricing: marketing skimming (price-skimming pricing) Setting a high price for a new product to skim maximum revenues layer by layer from the segments willing to pay the high price; the company makes fewer but more profitable sales.