C7. PRICING STRATEGY - Coggle Diagram
C7. PRICING STRATEGY
is the amount of money cus. must pay to obtain the product
P = CPsx + %Profit
What is it?
A measure of the sensitivity of demand to changes in price.
Price elasticity of demand = % change in quantity demanded/ % change in price
Cost-Plus Pricing (or Markup Pricing)
Break-even Pricing (or Target Return Pricing)
CUS. VALUE-BASED PRICING
New-product Pricing Strategy
Market-Skimming Pricing Strategy
Unique product, high technology, and amount of cus. willing to pay at that price
Market-Penetration Pricing Strategy
New product, competitive product, and a lot of replaceable product.
Product Mix Pricing Strategies
Captive product pricing
: Pricing products that
must be used
with the main product
Pricing low-value by-products
Optional product pricing
: Pricing optional or accessory products
the main product.
Product bundle pricing
: Pricing bundles of products
Product line pricing
an entire product line