L16 Developing Pricing Strategies and Programs
L16 Developing Pricing Strategies and Programs
Sharing economy
Bartering
Renting
Price-quality inferences
Price endings
B-Setting the Price
B-Setting the Price
Step 1: Selecting the Pricing Objective
B-Setting the Price
Step 2: Determining Demand
B-Setting the Price
Step 3: Estimating Costs
B-Setting the Price
Step 4—Analyzing Competitors’ Costs, Prices
and Offers
B-Setting the Price
Step 5: Selecting a Pricing Method
B-Setting the Price
• Markup pricing
– Add a standard markup to the product’s cost
B-Setting the Price
• Target-return pricing
– Price that yields its target rate of return on
investment
B-Setting the Price
Break-Even for Target-Return Price
B-Setting the Price
• Perceived-value pricing
– Based on buyer’s image of product, channel
deliverables, warranty quality, customer
support, and softer attributes (e.g., reputation)
B-Setting the Price