Management and Organizational Studies 2320A/B Lecture Notes - Lecture 11: Heinz Tomato Ketchup, Marketing, Marketing Mix

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2320A/B
• Professor: John White

Document Summary

Chapter 11: pricing concepts and strategies establishing value. The importance of pricing: we define price, as the overall sacrifice a consumer is willing to make to acquire a specific product or service o o o. Consumers judge the benefits a product delivers against the sacrifice necessary to obtain it, and then make a purchase decision based on this overall judgment of value. The key to successful pricing is to match the product or service with the consumer"s value perceptions. Price is the most challenging of the four ps to manage, partly because it is often the least understood prices rarely change except in response to radical shifts in the market conditions. Price is not only a sacrifice but an information cue as well we use the price of a product or service to judge its quality, especially when we are less knowledgeable about the product category.