BU354 Chapter Notes - Chapter 12: Price Floor, Common Application, Price Ceiling
Document Summary
Chapter 12 pricing concepts and strategies: establishing value. Price the overall sacriice a consumer is willing to make to acquire a speciic product or service. This includes the money paid in exchange for the item but also other sacriices can be non monetary, such as the value of ime and energy spent acquiring item or the shipping and travel costs. Consumers judge the beneits a product delivers against the sacriices necessary to obtain it. Key is to match product or service price with the consumers value percepions. A price set to low may signal poor quality or performance, or other negaive atributes. Consumers don"t necessarily want a low price all the ime for all products, they want high value for their money which may come at a high or low cost. However consumers usually rank price as one of the most important components of their purchase decision.
