Chapter13 - Marketing CHAPTER 13 Price: the money or other...

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Marketing CHAPTER 13 Price : the money or other considerations (including other goods and services) exchanged for the ownership or use of a good or service Barter : exchanging goods and services for other goods and services, rather than for money Price Equation Final price = List price – (Incentives + Allowances) + Extra Fees Value = Perceived benefits / Price *For a given price, as perceived benefits increase, value increases Value-pricing : the practice of simultaneously increasing product and service benefits while maintaining or decreasing price *”Value” involves the judgment by a consumer of the worth and desirability of a product or service relative to substitutes that satisfy the same need Profit equation Profit= Total revenue – Total cost = (Unit price x Quantity sold) – (Fixed cost + Variable cost) 6 major steps in the process organizations go through in setting prices 1. Identify pricing objectives and constraints 2. Estimate demand and revenue 3. Determine cost, volume and profit relationships 4. Select an approximate price level
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This note was uploaded on 02/14/2011 for the course AEM 2400 at Cornell University (Engineering School).

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Chapter13 - Marketing CHAPTER 13 Price: the money or other...

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