MKT 100 Chapter Notes - Chapter 11: Oligopoly, Demand Curve, Price Fixing

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Marla Spergel

Document Summary

Chapter 11- pricing concepts and strategies: establishing value. Price- the overall sacrifice a customer is willing to make to acquire a specific product/service: sacrifice is both monetary and non-monetary. Consumers judge the benefits a product delivers against the sacrifice necessary to obtain it, and then make a purchase decision based on overall judgement of value. Pricing a product to match the consumer"s value perceptions. Price too low can signal low quality, poor performance, or other negative attributes about the service/product. Price is one of the most important factors in their purchase decisions. Customers to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales. Sales orientation- a company objective based on the belief that increasing sales will help the firm more than increasing profits. Competitor orientation- a company objective based on the premise that the firm should measure itself primarily against its competition.