Principles of Marketing

(C. Jardin) #1

Saylor URL: http://www.saylor.org/books Saylor.org


REVIEW QUESTIONS



  1. What factors do organizations consider when making price decisions?

  2. How do a company’s competitors affect the pricing decisions the firm will make?

  3. What is the difference between fixed costs and variable costs?


[1] David S. Jackson, John S. Demott, and Allen Pusey, “Dirty Tricks in Dallas,” Time, March 7,
1983, http://www.time.com/time/magazine/article/0,9171,953755,00.html (accessed December 15, 2009).


15.3 Pricing Strategies


LEARNING OBJECTIVES



  1. Understand introductory pricing strategies.

  2. Understand the different pricing approaches that businesses use.


Once a firm has established its pricing objectives and analyzed the factors that affect how it should
price a product, the company must determine the pricing strategy (or strategies) that will help it
achieve those objectives. As we have indicated, firms use different pricing strategies for their

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