MARK 301 Lecture Notes - Lecture 10: Orbitz, Convenience Store, Product Defect
9 Dec 2017
School
Department
Course
Professor
Document Summary
Unit cost before determining the price // death. Spiral of c-b pricing-> when sales are low-> cost per unit higher. 2. demand-based pricing: ask consumers how much are they willing to pay through samples. Problem: consumer will never admit how much $ willing to pay // target. Costing: satisfies customers & meets set profit margins. Trap: pricing goods at whatever the buyers willing to pay, rather than at what the product is really valued. Perceived value: produ(cid:272)t"s (cid:448)alue, as perceived by consumers reduce > when objective value is lower than. Due to: product defect or lack differentiation, incompetent market research, new competition. Value-based perspective: deep understanding of how products & services. Value-> 1st u(cid:374)dersta(cid:374)d (cid:272)o(cid:374)su(cid:373)er needs/ know your products".
