Management and Organizational Studies 2320A/B Lecture Notes - Lecture 8: Oligopoly, Customer Relationship Management, Break Even

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: Colin Mc Dougall

Document Summary

Lecture 8- pricing: understanding and capturing customer value, Cost of production, competitor"s price, customer perceived value, economy (external factors), target market, advertising and overhead, marketing strategy/mix (product image), demand. Narrowly defined- amount of money charged for a product. Broadly defined- totally value that customers exchange for the benefits of having or using a product. Major pricing strategies: price is considered along with other marketing mix variables, good value pricing- offering just the right combination of quality and good. Customer value-based pricing- setting prices based on buyers" perceptions of value rather than seller"s costs ex. Oakley sunglasses company"s offers and charging higher prices: target price is based on value perception- ted talk: life lessons from an ad, value-added pricing- attaching value-added features to differentiate a service at a fair price man. Common for golf shop merchandise- marked up keystone (cost x 2: breakeven pricing = fc/(price-vc, target return pricing and costs. Rc cola- charges 10% off coke & pepsi price.