Note-Chapter_17

Note-Chapter_17 - MKT 3401 Section01 02 NOTE Yinglu Wu CH 17 Chapter 17 Pricing Concepts Price is that which is given up in an exchange to acquire

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MKT 3401 Section01, 02 Yinglu Wu NOTE CH 17 Chapter 17 Pricing Concepts Price is that which is given up in an exchange to acquire a good or service. -revenue: the price charged to the customers multiplied by the number of units sold -profit: revenue minus expenses Pricing Objectives Profit-Oriented o Profit maximization: setting prices so that total revenue is as large as possible relative to total costs o Satisfactory profits o Target return on investment: net profit after taxes divided by total assets Sales-Oriented o Market share: a company’s product sales as a percentage of total sales for that industry o Sales maximization Status Quo o Maintain existing prices o Meet competitor’s prices Demand determinants of price Demand: the quantity of a product that will be sold in the market at various prices for a specified period Supply: the quantity of a product that will be offered to the market by a supplier at various prices for a specific period 1
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This note was uploaded on 03/01/2010 for the course MKT 3401 taught by Professor Jaber during the Fall '08 term at LSU.

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Note-Chapter_17 - MKT 3401 Section01 02 NOTE Yinglu Wu CH 17 Chapter 17 Pricing Concepts Price is that which is given up in an exchange to acquire

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