EMKT503 Unit 9 Pricing Decisions Quick Revision

EMKT503 Unit 9 Quick Revision - Pricing Decisions

• Pricing Decision: Pricing determines revenue and affects demand, image and profitability.
• Cost Based Pricing: Price is set by adding margin to cost.
• Value Based Pricing: Price is based on customer perceived value.
• Competition Based Pricing: Price is decided after considering competitor prices.
• Skimming and Penetration Pricing: Skimming starts high; penetration starts low to build market share.

Last Minute Tip

Revise definitions, differences, diagrams, examples and short notes before the exam.