Marketing Ch14 part1

Marketing Ch14 part1 - Chapter 14: Developing Pricing...

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Chapter 14: Developing Pricing Strategies and Programs When examining products, consumers often employ reference prices, campaigning an observed price to an internal reference price they remember of to an external frame of reference such as a posted “regular retail price.” Many consumers use price as an indicator of quality. Many sellers believe prices should end in an odd number. Firm must consider many factors in setting its pricing policy: Step 1: Selecting the Pricing Objective. Company decides where it wants to position its market offering by: o Survival – Companies pursue this as a major objective if they are plagued with over-capacity, intense competition, or changing consumer wants. o Maximum Current Profit o Maximum Market Share – Higher sales volume will lead to lower unit costs and higher long- run-profit. Market-penetration pricing is a pricing strategy where prices start low to drive higher sales volume from price-sensitive customers and produce productivity gins. Use this if:
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Marketing Ch14 part1 - Chapter 14: Developing Pricing...

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