Lecture 11/12- Pricing Strategies

Question 1

What is price?

Answer 1

• price is a statement of value for products or services
• price is the money or other considerations exchanged for the ownership or use of a product or service

Question 2

What is value?

Answer 2

value is what the consumer receives
- the amount of money people are prepared to pay for a product represents its value

Question 3

What is step 1 of setting the price?

Answer 3

• identify pricing objectives (prices, sales revenue, market share, survival, social responsibility) and constraints (demand, newness, cost)

Question 4

What is step 2 of setting the price?

Answer 4

estimating the demand and revenue