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					Pricing

Chapter 13
                     Pricing

   Price
   Barter
   Price equation
                 What is Value?

   Value= Perceived benefits/price
       Value-pricing


   Do higher prices= Better products?

   Price= Total Revenue- Total Cost
              Pricing Process

   Identify Pricing Constraints
   Estimate Demand and Revenue
   Determine Cost, Volume, and Profit
    Relationships
   Select an Approximate Price Level
   Set List or Quote Price
   Make Special Adjustments to List or
    Quoted Price
        Step 1: Pricing Constraints

   Pricing Constraints
       Demand
       Newness
       Single product v. Product Line
       Production and Promotion Costs
       Costs of Changing Prices
       Type of Competitive Markets
       Competitors’ Prices
       Step 1: Pricing Objectives

   Profit
   Sales
   Market Share
   Unit Volume
   Survival
   Social Responsibility
        Step 2: Estimate Demand and
                   Revenue
   Demand
       Demand factors
   Estimating Revenue
       Total Revenue
       Average Revenue
       Marginal Revenue
       Price Elasticity
Step 3: Determine Cost, Value, and
          Profit Relations
   Costs
       Total cost
       Fixed cost
       Variable Cost
       Marginal Cost


   Break-even Analysis

				
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posted:8/26/2012
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