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Pricing - Coggle Diagram
Pricing
the amount charged for a product
can also be the
sum of values
consumers give in exchange for the benefits received from product
Cost/Sacrifice Value
economic (fees, rent)
NON economic (psychological, personal investment, risk)
effects
positioning & perception
more expensive = better quality
gain greater market position
increase sales
manage demand
decrease price to increase demand
increasing price to decrease demand
achieve financial objectives/goals
profits, cashflow
manage competition
discourages market entry
FACTORS INFLUENCING PRICE
customer perceptions
legal and ethical
Company factors
positioning
must be reflected by appropriate mix
price to be consistent with other factors of mix
costs
sets the price floor
total cost
sum of fixed and variable cost
variable cost
fixed cost
costs do not change
competition