Kalan Lecture 18

Kalan Lecture 18 - Pricing: the value of a product. Price...

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Pricing: the value of a product. Price and value, you start to think of them similarly. Price : the value that customers give up or exchange for a desired product. usually speak of price in monetary terms. Money is a medium of exchange so that two individuals can all agree more easily - instead of bartering. gives us a common frame of reference, so that you have an idea what its worth, and I have an idea of what its worth. Arbitraging: difference between what you buy the currency for and what you sell it for. Trading currencies to look for that slight difference in the market place, to make a profit. Payment: can come in lots of goods. Its money. We can pay for it in goods, services, pay with votes. Tuition: Another word for price. The price per credit, per semester, per course. Doctors charge you a service fee (another word for price). Dues, term used in health/workout facilities, to become a member. Price can also be non monetary, you can barter. Theres an opportunity cost: value of what youre giving up to obtain something else. pricing is least understood and least appreciated How you price your product and your service, has dire consequences on so many levels. Has perception, competitive, profit margin consequences. Price decisions are not made in a vacuum. They impact each element in the marketing mix.
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Kalan Lecture 18 - Pricing: the value of a product. Price...

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