CH14-Strategic%20Pricing%20Methods-student

CH14-Strategic Pri - 14-1CHAPTERSTRATEGIC PRICING METHODS1414-2Pricing Strategies14-3Cost-Based Methods•Cost-base pricing methods_•Does not

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Unformatted text preview: 14-1CHAPTERSTRATEGIC PRICING METHODS1414-2Pricing Strategies14-3Cost-Based Methods•Cost-base pricing methods ___________________________•Does not recognize role of customers or competitors in marketplace•All costs calculated on a per unit basis•Assumes costs don’t vary for different levels of production14-4Competitor-Based Methods•Set prices to signal information of how product _________________________________•Often used to gain market share or to exploit a cost advantage they have achieved•Price wars = _____________•Premium pricing–Setting price above competitors to get those consumers who shop for the best14-5Value-Based Methods•Setting prices that focus on the overall value of the product•Based on Consumer perceptionsMercedes-Benz Commercial14-6Pricing Strategies14-7vs..Everyday low pricing (EDLP)High/low pricingEveryday Low Pricing vs.. High/Low Pricing14-8Odd Prices•Odd prices may be so traditional that sellers are afraid to round them off•They may suggest a good deal•They may also suggest low quality14-9...
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This note was uploaded on 01/12/2012 for the course MAR 3023 taught by Professor Bagwhandee during the Fall '08 term at University of Central Florida.

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CH14-Strategic Pri - 14-1CHAPTERSTRATEGIC PRICING METHODS1414-2Pricing Strategies14-3Cost-Based Methods•Cost-base pricing methods_•Does not

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