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Chapter Ten: Pricing: Understanding and Capturing Customer Value
Chapter Ten: Pricing: Understanding and Capturing Customer Value
Pricing:
Understanding and Capturing
Customer Value
Copyright © 2009 Pearson Education, Inc. Chapter 10 - slide 1
Publishing as Prentice Hall
Pricing Concepts
Understanding and
Capturing Customer Value
Topic Outline
• What Is a Price?
• Customer Perceptions of Value
• Company and Product Costs
• Other Internal and External
Considerations Affecting Price
Decisions
Value-based pricing
Good-value pricing
Value-added pricing
Copyright © 2010 Pearson Education, Inc.
Chapter 10 - slide 6
Publishing as Prentice Hall
Factors to Consider When
Setting Prices
Customer Perceptions of Value
Pure competition
Monopolistic competition
Oligopolistic competition
Pure monopoly
Copyright © 2010 Pearson Education, Inc.
Chapter 10 - slide 23
Publishing as Prentice Hall
Factors to Consider When Setting
Prices
Other Internal and External Considerations
Affecting Price Decisions
Market Model
- Characteristl
NumberorArms
Pu., Comp1ltitl9n
Averylrgenumber
Monopoll$tlc Competition
Many
Oligopoly
Few
PureMonopoly
One
-
Typeofprodutt Standardized Differentlted Standrdlzedor Unique;notlose
dlfferentlated substl
tutes
Control over None Some, but within Limited by Consid
price rather mutual erable
narrow limits Interdependen
Wryeasy,no ce;
Condltlonsorentry Relativelyeasy Slghlfitantobstacles Blocked
considerable ;; 0 )
obstacles c:
with '"-+-'
w
Nonprlce None Considerableemphasis Typillyagr-eatdeal, Mostlypublic Q)
collusion
competition onadvertising,brand particularlywithproduct relations ..Y
names,trademarks differeouatlon adveruslng ro
Examples Agriculture Retail trade,dresss. Steel,automobiles,funn Localutilities 2
shoes implements,many
householdappliances
Economic conditions
Government
Social concerns