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What is 1 + 3?
Ch 20 - Price
flexibility (can be adjusted)
competitors have this flexibility too! can spark P war and weaken co.
focuses on features, service, quality, promotion, etc. co must have strong brand
builds strong customer loyalty
extra cost a firm incurs when it produces 1 more unit of a product
change in total rev when firm sells another unit of a product
internal reference point
P developed in buyer's mind through past experience
external reference point
comparison P made by retailer
care about P and quality
just care about low P
buy products that signify status
quantity discount aggregated over time
concession in P to ACHIEVE a desired goal
P is the P of the merchandise at the factory.
BUYER pays shipping
PRODUCER pays shipping
geo P policy that includes the P at factory plus freight charges from base point nearest the buyer
freight absorption pricing
seller absorbs all or part of actual freight costs for a PARTICULAR customer
when 1 unit in a co sells to another unit