MCS 1000 Chapter Notes - Chapter 13: Yield Management, Uptodate, Price Discrimination

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Sergio Meza

Document Summary

The money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service: barter: practice of exchanging goods and services for other goods and services rather than for money. Price as an indicator of value: value: ratio of perceived benefits to price. At a certain price-as perceived benefits increase, perceived value increases: value pricing: increasing product or service benefits while maintaining or decreasing price. Low price might imply possible poor quality and poor perceived value (for goods and services alike) Price in the marketing mix: profit equation: Profit = total revenue total cost. = (unit price * quantity sold) total cost: 6 steps involved in the process organizations go through in setting prices. Make special adjustments to the list or quoted price. Step 1: identify pricing constraints and objectives: must be able to narrow range of choices, pricing constraints: relate to conditions existing in the marketplace, pricing objectives: reflect corporate goals.