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Pricing objectives
Survival Maximum current profit Maximum market share Maximum market skimming Product-quality leadership
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2. Determining demand
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Costs
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Profits = TR - TC
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Total Cost
Loss
Fixed Cost
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Pricing Strategies
Differential Pricing Second-market discounting Periodic discounting Product Line Pricing Bundling Premium pricing Partitional pricing Psychological Pricing Odd-even pricing Customary pricing One-sided claims
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Competitive Pricing
Leader Pricing Parity Pricing Low-Price Supplier
Cost-based Pricing
Cost-plus Pricing
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Price changes for high-quality brands affect weaker brands and private-label brands disproportionately.
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Pricing Services
Price is influenced by the nature of the service involved. The larger the market share, the higher the price that can be charged. Managing off-peak demand makes pricing services difficult. Bundling services into a single package and price is a common strategy.
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