Productqualityleadership highpricestocoverhigher

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Unformatted text preview: Profit, Etc. Objectives Market Share Leadership Low as Possible Prices to Become the Market Share Leader. Product Quality Leadership High Prices to Cover Higher Performance Quality and R&D. 9-4 Four Seasons Hotel 9-5 Types of Cost Factors that Affect Pricing Decisions Fixed Costs (Overhead) Costs that don’t vary with sales or production levels Executive Salaries, Rent Variable Costs Costs that do vary directly with the level of production Raw materials Total Costs Total Costs Sum of the Fixed and Variable Costs for Any Given Sum of the Fixed and Variable Costs for Any Given Level of Production Level of Production 9-6 External Factors Affecting Pricing Decisions Market and Demand Competitors’ Costs, Prices, and Offers Other External Factors Economic Conditions Reseller Reactions Government Actions Social Concerns 9-7 Market and Demand Factors Affecting Pricing Decisions Pricing in Different Types of Markets Pure Competition Pure Competition Many Buyers and Sellers Many Buyers and Sellers Who Have Little Who Have Little Effect on the Price Effect on the Price Monopolistic Monopolistic Competition Competition Pure Monopoly Pure Monopoly Single Seller Single Seller Oligopolistic Oligopolistic Competition Competition Many Buyers and Sellers Few Sellers Who Are Many Buyers and Sellers Few Sellers Who Are Sensitive to...
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