de ma nd re la tions hip re de ma nd curve p rice e

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: opolis tic compe tition Oligopolis tic compe tition P ure monopoly • C ons ume r pe rce ptions of Cons price a nd va lue p rice • P rice -de ma nd re la tions hip re De ma nd curve P rice e la s ticity of de ma nd Factors to Consider When Setting Price Exte rnal Exte Fac to rs • N ature of m arke t Nature and de m and a nd • C om pe titors ’ cos ts , Com price s , and offe rs p rice • O the r e nvironm e ntal Othe e le m e nts • C ons ide r compe titors ’ cos ts , Cons p rice s , a nd pos s ible re a ctions whe n de ve loping a pricing s tra te gy • P ricing s tra te gy influe nce s the na ture of compe tition na Low-price low-ma rgin Low-price stra te gie s inhibit compe tition s tra High-price high-ma rgin High-price stra te gie s a ttra ct compe tition s tra • Be nchma rking cos ts a ga ins t Be the compe tition is re comme nde d re Factors to Consider When Setting Price Exte rnal Exte Fac to rs • N ature of m arke t Nature and de m and a nd • C om pe titors ’ cos ts , Com price s , and offe rs p rice • O the r e nvironm e ntal Othe e le m e nts • Economic conditions Affe ct production cos ts Affe Affe ct buye r pe rce ptions of Affe price a nd va lue p rice • R e s e lle r re a ctions to Re price s mus t be cons ide re d p rice • G ove rnme nt ma y re s trict Gove or limit pricing options or • S ocia l cons ide ra tions ma y be ta ke n into a ccount be General Pricing Approaches • C os t-Ba s e d P ricing: Cos t-Plus Pricing Cos C...
View Full Document

This note was uploaded on 02/09/2012 for the course COMPUTER S a303 taught by Professor None during the Spring '11 term at BEM Bordeaux Management School.

Ask a homework question - tutors are online