BUS 343 Study Guide - Dynamic Pricing, Future Shop, Price Skimming

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 343
• Professor: Zaheer Jiwani

Document Summary

Price is the value that customers give up, or exchange, to obtain a desired product. Price is the most important consideration for most consumers when making a purchase or deciding where shop. Revenue: the price charge to customers * the number of units sold ( r = p*q) Smart: specific, measurable, attainable, relevant, and time- Total revenue = price x quantity sold. Can maximize sales through pricing and non-price factors such as. Increased sales volume is more important in the long run service and quality. Controlling a specified minimum share of the market for a firm"s good or service. Shifts marketing mix to focus on non-price factors ( airlines serveice) Promise to stand behind customers and support them always. Pricing is particularly important with prestige products ( or luxury products) that have a high price and appeal to statue-conscious consumers. Elasticity of demand: consumers" responsiveness or sensitivity to changes in price.