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Topic 9: Pricing and Credit Strategies image , Pricing Established Goods,…
Topic 9: Pricing and Credit Strategies 
Image, Competition, Value
Companies that take a strategic approach to pricing and monitor its results can raise their sales revenue between 1 and 8%
--> E.G - NYC drugstore chain Duane Reade
Price Conveys ImagePrice:
- sends important signals [quality, prestige, uniqueness etc.]
- Common mistake --> over charge / under charge the price
--> Understand target market & identify cusotmer willing to pay.
Competition & Pricing
Bear in mind abt competitors price but dont match/beat them [WHY? Eliminate companies profits & scar an industry for years]
KEY - Differentiate company's good / services
Focus on Value
Right price, depends on value it brought to the customer
Objective Value - of the products and services is what customers would be willing to pay if they understood perfectly the benefits that a product or service delivers.
Perceived Value - Is what customers base their assessment upon when they do not have access to “perfect information” and, therefore, depend upon their perception of what the product or service is worth.
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Consumer Credit
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Layaway /9Purchasing method to let the customer places a deposit on item for later pickup for later when they come back)
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LO1: Discuss the relationships among pricing, image, competition, and value.
LO2: Describe effective pricing techniques for introducing new products or services and for existing ones.
LO3: Explain the pricing methods and strategies for retailers, manufacturers, and service firms.
LO4: Explain the pricing methods and strategies for retailers, manufacturers, and service firms.