Chapter 12 - Chapter 12: Pricing Products and Services I....

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Chapter 12: Pricing Products and Services I. Where dot-coms still thrive: helping you get a $100 a night hotel room overlooking New York’s Central Park a. Why travel dot-coms haven’t tanked i. Saving time ii. Saving money b. Travel dot-com prices: a win-win for buyers and sellers II. Nature and importance of Price a. Price can be: tuition, rent, interest, premium, fee, dues, fare b. What is price? i. Price ii. Barter iii. Special fees and surcharges iv. Price equation c. Price as an indicator of value i. Value pricing d. Price in the marketing mix i. Profit equation: profit = total revenue – total cost 1. = (unit price x quantity sold) – total cost III. General pricing approaches a. Demand oriented approaches i. Skimming pricing ii. Penetration iii. Prestige iv. Odd-even v. Target vi. Bundle vii. Yield-management b. Cost-oriented approaches i. Standard mark-up ii. Cost-plus c. Profit-oriented approaches i. Target profit ii. Target return on sales iii. Target return on investment
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Chapter 12 - Chapter 12: Pricing Products and Services I....

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