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Unformatted text preview: problem in discontinuing it is that they would loose the penetration and some share of market given solely by SLS. Chapter 9: Pricing The four main components of price are the marketing strategy, customer value, willingness to pay, competitors prices and costs. The possible relationships among perceived value, price and cost are 1. Perceived Value > Price > Cost 2. Price> perceived value> cost 3. Price > Cost >Perceived Value Price should always be set greater than variable costs. However cost based pricing is difficult to implement because there are many kinds of costs. Customer value is the monetary value a customer places on your product. You can measure customer value directly by calculating the monetary benefits of your product or service by using survey approaches....
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This note was uploaded on 02/16/2010 for the course MBA 2342 taught by Professor Prof during the Spring '10 term at Academy of Art University.
- Spring '10