Chapter%2014%20Student%20Handouts

Chapter%2014%20Student%20Handouts - price. Flexible-Price...

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Figure 13-3, p. 339: Steps in Setting Price
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Figure 14-1, p. 362: Steps in Setting Price
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Step 4: Selecting An Approximate Price Level Demand Approaches Skimming, Penetration, Prestige, Odd-Even, Target, Bundle, Yield Management Farecast FareCompare Cost Approaches Standard Mark-up, Cost-Plus, Experience Curve With the information they now have, managers can now begin to think about setting an actual price. They will want to begin by determining a reasonable starting point for price. There are several approaches they can take.
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Profit-Oriented Approaches Target Profit, Target ROI, Target Return on Sales Competition Oriented Approaches Customary; Above, At or Below Market, Loss- Leader Step 4: Selecting An Approximate Price Level
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One-Price Policy / Fixed Pricing The product is offered to all buyers at the same
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Unformatted text preview: price. Flexible-Price Policy / Dynamic Pricing Price varies based on individual buyers and situation. Step 5: Set the List of Quoted Price Company Effects Customer Effects (reference prices) Competitive Effects (price wars) Balancing Incremental Costs & Revenues Step 5: Set the List of Quoted Price Step 6: Make Special Adjustments to List or Quoted Price Discounts: Quantity, Seasonal, Trade (functional, $100 less 30/10/5), Cash (2/10 net 30) Allowances: Trade-In, Promotional Geographical Step 6: Make Special Adjustments to List or Quoted Price Legal & Regulatory Aspects Price Fixing Price Discrimination Deceptive Practices (see Figure 14-9) Predatory Pricing...
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This note was uploaded on 03/17/2009 for the course BCOR 2400 taught by Professor Rexmoody during the Spring '08 term at Colorado.

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Chapter%2014%20Student%20Handouts - price. Flexible-Price...

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