MGM 301 Lecture Notes - Lecture 4: Variable Cost, Eure, Oligopoly
22 Jan 2016
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Price- the money or other considerations exchanged for the ownership or use of a good or service. Barter- practice of exchanging goods and services for other goods and services rather then money. Final price= list price (incentives + allowances) + extra fees. Buyers are more willing to pay extra fees then a higher list price. Value- ratio of perceived benefits to price: value= perceived benefits/ price. Value pricing- the practice of simultaneously increasing product and service benefits while maintaining or decreasing price. Make special adjustments to list or quoted price. Pricing objectives reflect corporate goals, pricing constraints relate to conditions existing in marketplace. Pricing objectives- specifying the role of price in an organization"s. Sales: unit volume as objective can be counterproductive by drastic price cutting that drives down profit. Identifying pricing constraints: pricing constraints- factors that limit the range of prices a firm may set set, consumer demand, factors within organization, competitive factors, legal, and regulatory.
