Outcome #2 the five Cs

Question 1

1. Company objectives

Answer 1

1. Profit-oriented ( i.e all prod. prove 18% of margin to reach a firm goal)
2. Sales oriented (sales prices low// new sales,// take sales from a competitor)
3. Competitor oriented
   low prices, discourage competitors enter to the market
   High prices, high quality, show leadership
   Set the equal, same value
4. Customer-oriented
   Target a segment where consumers will pay high

Question 2

Profit-oriented

Answer 2

Target profit pricing
uses price to stimulate a certain level of sales at a certain profit per unit.

Maximizing profits strategy
Mathematical problems very hard to undertake

target return pricing
designed to produce a specific return on investment, usually expressed as a percentage of sales.

Question 3

Sales oriented

Answer 3

Sales help more firm than profits

Market share objective is better than profit

Question 4

Competitor oriented

Answer 4

Competitive parity

A firm’s strategy of setting prices that are similar to those of major competitors.

Question 5

Customer oriented

Answer 5

Pricing orientation that explicitly invokes the concept of customer value and setting prices to match consumer expectations.