Chapter 6 - Bottom - Up Approach to Pricing Flashcards
1
Q
What is the goal of pricing?
A
To make a satisfactory profit
2
Q
What criteria does price have to meet?
A
Cover all expenses
Be attractive to customers while balancing price and demand
3
Q
When costs are controlled…
A
…Profits will be maximized
4
Q
What is strategic pricing based on?
A
Based on supply and demand in the market
5
Q
What are long term advantages of strategic pricing?
A
Maximize sales revenue
Maximize ROI
Maximize profitability
Maximize business growth in a new operation
Increase market share for an existing operation
