COMMERCE 2MA3 Chapter Notes -Value-Based Pricing, Socalled, Variable Cost
17 Dec 2014
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Price: price: exchange value of a good or service; whatever that product can be exchanged for in the marketplace, often cash, may be other goods or services (barter, dynamic and variable, loyalty programs, five objectives of pricing. Constraints on pricing pg. 503 figure: demand for the product, newness of the product, single product vs. product line (single product no reference points, more flexibility in price setting, production and marketing costs, cost of price changes, type of the market. Target return objective short run or long run pricing objectives of achieving a specified return on either sales or investment (all evaluate performance: volume objectives(cid:224) increased sales volume is more important in the long run than immediate profits, maximize sales through pricing and non price factors such as service and quality, i. e. low priced pcs, market share objective the goal of controlling a specified minimum share of the market for a firm"s good or service.
