BU352 Chapter Notes - Chapter 11: Oligopoly, Cash Register, Price Floor
Document Summary
Chapter 11: pricing concepts and strategies: establishing value. Price: overall sacrifice a consumer is willing to make to acquire a specific g/s (monetary and nonmonetary) Benefits vs. sacrifice necessary to obtain it, then make purchase decision. Key to successful pricing: match g/s with consumer"s value perceptions. Price set too low may signal low quality, poor performance, or other negative attributes about g/s want high value instead, which may come with high or low price depending on bundle of benefits the g/s delivers. Price is only marketing mix that generates revenue = must be perfect or no sales. Price is most challenging 4 p"s to manage should view pricing decisions as strategic opportunity to create value rather than afterthought to rest of marketing mix. Each firm embraces objective that fits where management thinks firm needs to go to be successful how firm intends to grow. Profit orientation: implemented by focusing on target profit pricing, maximizing profits, or target return pricing.
