MCS 1000 Lecture Notes - Lecture 13: Target Costing, Yield Management
3 Feb 2018
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Document Summary
Price is the money or other considerations exchanged for the ownership or use of a good or service. Profit equation = total revenue total cost. The highest initial price that customers really desiring a product are willing to pay. Setting a low initial price on a new product to appeal immediately to the mass market e. g. amazon. Setting a high price on a product to attract quality or status conscious customers. Pricing a line of products at the a number of different specific pricing points. Setting prices a few dollars or cents under an even number. Deliberately adjusting the composition and features of a product to achieve the target price to customers. The marketing of two or more items in a single package price. The charging of different prices to maximize revenue for a set amount of capacity at any given time e. g. airlines and hotels.
