Ch. 13

The money or other considerations exchanged for the ownership or use of a good or servce.

Emand, product newness, costs, competitors, other products sold by the firm, and the type of competitive market, restrict a firm’s pricing latitude.

May include profit, sales revenue, market share, unit volume, survival, or some socially responsible price level.

Factors that limit the latitude of proces a firm may set are pricing constraints.

Pure monoply:one seller who sets the price for a unique product.
Oligolpoly-Few sellers who are sensitive to each others price.
Monopolistic Competition:Many sellers who compete on non-price factors.
Pure competition:Many sellers who follow the market price for identical commodity products.

The highest initial price that customers really desiring a product are willing to pay.

Setting a low initial price on a new product to appeal immediately to the mass market.

Skimming
Penetration
prestige
price lining
odd even
target
bundle
yeild management.

Demand oriented approaches weigh factors underlying expected customer tastes and preferences more heavily than such factors as cost, profit, and competition when selecting a price level.

Setting a high price on a product to attract quality -or status conscious consumers.

Pricing a line of products at a number of different specific pricing points. a line of sweaters.

Setting prices a few dollars or cents under an even number.

The practive of deliberately adjusting the composition and fearures of a product to achieve the target price to consumers.

The marketing of two or more products in a single "package price"

The charging of different prices to maximize revenue for a set amount of capacity at any given time.