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Love Lock 06

Love Lock 06

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Published by api-3698751
Chapter 6
Chapter 6

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Published by: api-3698751 on Oct 14, 2008
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03/18/2014

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Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
6- 1
Chapter 6Pricing and Revenue
Management
Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
6- 2
What Makes Service Pricing Strategy Different
(and Difficult)?
\ue000No ownership of services--hard for firms to calculate
financial costs of creating an intangible performance
\ue000Variability of inputs and outputs--how can firms define a
\u201cunit of service\u201d and establish basis for pricing?
\ue000Many services hard for customers to evaluate--what
are they getting in return for their money?
\ue000Importance of time factor--same service may have more
value to customers when delivered faster
\ue000Delivery through physical or electronic channels--may
create differences in perceived value
Slide \u00a92004 by Christopher Lovelock and Jochen WirtzServices Marketing 5/E
6- 3
Objectives of Pricing Strategies
\ue000Revenue and profit objectives
\ue001Seek profit
\ue001Cover costs
\ue000Patronage and user base-related objectives
\ue001Build demand
\ue001Build a user base

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