BU352 Chapter Notes - Chapter 11: Common Application, Ebay, Price Fixing
Document Summary
Lo1: explain what price is and its importance is establishing value in marketing. Price the overall sacrifice a consumer is willing to make to acquire a specific product or service. Lo2: illustrate how the 5 c"s influence pricing decisions. The 5 c"s of pricing: company objectives, customers, costs, competition, channel members. Company objectives different firms have different goals. Each firm embraces an objective that seems to fit where management thinks the firm needs to go to be successful. 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 will increasing profits. Value is only implicitly considered when pursuing competitor orientation: competitive parity set prices that are similar to those of major competitors, customer orientation explicitly invokes the concept of value and sets prices to match consumer expectations.
