MKT291Ch.12 - Chapter 12 Price o Value o The ratio of...

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Chapter 12 Price o The money or other considerations exchanged for the ownership or use of a product or service Value o The ratio of perceived benefits to price Profit Equation o Profit = total revenues – total cost Pricing Approaches o Demand Oriented Pricing Skimming pricing Setting the highest initial price that customers really desiring the product are willing to pay Penetration pricing Setting a low initial price to appeal immediately to the mass market Prestige pricing Setting a high price so quality and status conscious consumers will be attracted to the product Odd-Even pricing Setting prices a few dollars or cents under an even number Target pricing Estimate the price that the ultimate consumer is willing to pay Bundle pricing Marketing two or more products in a single package Yield Management pricing
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Charging different prices to maximize revenue for a set amount of capacity at any given time o Cost Oriented Pricing
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MKT291Ch.12 - Chapter 12 Price o Value o The ratio of...

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