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17 Pricing Objectives and Policies

Introduction to Pricing (1). Pricing strategy (nothing you buy is priced too high)Definition: value given up for benefits firm offers (fuzzy: good deal varies; real estate)Positive: easiest ?p" to change; determines revenuesNegative: difficult to evaluate; different to gain advantage. Introductio

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17 Pricing Objectives and Policies

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    1. 17 Pricing Objectives and Policies Professor Close

    2. Introduction to Pricing (1) Pricing strategy (nothing you buy is priced too high) Definition: value given up for benefits firm offers (fuzzy: good deal varies; real estate) Positive: easiest p to change; determines revenues Negative: difficult to evaluate; different to gain advantage

    3. Introduction to Pricing (2) Pricing Strategy (cont) Reference price: consumers ideas of what price should be (What for gallon gas? CD? Movie?) Flexibility Administered prices Firms decide on price vs mkt. (fluctuation is relatively uncommon) Channel conflict (MSRP)

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