Unique – Value Effect: Buyers are less sensitive when the product is more unique. Substitute- Awareness Effect: Buyers are less price sensitive when they are…

Price is the only element in the marketing mix that produce revenue; the other elements produce cost. Price is the amount of money that customers…

Estimating Cost a company will like to charge a price that covers its cost of producing, distributing and selling the product, including a fair return…

Competitors prices and possible price reactors help the firm establish where its prices might be set. The company needs to learn the price and quality…

A company can select any of the following pricing method: Mark-up Pricing Target-return Pricing Perceived value pricing Going rate Pricing Select-bid Pricing

The most elementary pricing method is to add a standard mark-up to the cost of the product.

The firm determines the price that would yield its target rate of return on investment (ROI). Suppose a manufacturer has invested one million in the…

An increasing number of companies are basing their price on the product’s perceived value. They see the buyer’s perception of value, not the sellers cost,…

Competitive-oriented Pricing is common where firm for jobs. The firm bases its price on expectations of how competitors will price rather than on a rigid…

In going rate pricing, the firm bases its price largely on competitors prices. With less attention paid on its own cost and demand. The firm…