Chapter 10: Pricing the Product

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Chapter 10: Pricing the Product por Mind Map: Chapter 10: Pricing the Product

1. Price

2. Demand

3. Pricing and Electronic Commerce

3.1. Dynamic Pricing Strategies

3.2. Auctions

3.3. Pricing Advantages for Online Shoppers

3.3.1. Search Engines

3.3.2. Detailed Information

3.3.3. Lower's costs through time saving

4. Psychological Issues in Pricing

4.1. Buyer's pricing expectations

4.1.1. Internal Reference Prices

4.1.1.1. Reference Pricing Strategies

4.1.1.2. Assimilation Effect

4.1.1.3. Contrast Effect

4.1.2. Price/Quality Inference

4.2. Psychological Pricing Strategies

4.2.1. Odd-Even pricing

4.2.1.1. Odd

4.2.1.2. Even

4.2.2. Price Lining

5. Legal and Ethical Considerations in Pricing

5.1. Bait-and-Switch

5.2. Loss Leaders

5.3. Price Fixing

5.3.1. Horizontal Price Fixing

5.3.1.1. Cartel

5.3.2. Vertical Price Fixing

5.3.3. Predatory Pricing

6. 1: Develop Sales or Market Share Objectives

6.1. Profit Objectives

6.2. Sales or Market Share Objectives

6.3. Competitive Effect Objectives

6.4. Customer Satisfaction Objectives

6.5. Image Enhancement Objectives

6.5.1. Prestige Products

7. 2. Estimate Demand

7.1. Law of Demand

7.1.1. Prestige Products

7.2. Shifts in Demand

7.3. Estimating Demand

7.3.1. Estimates of potential Sales

7.4. Price Elasticity of Demand

7.4.1. E > 1: Elastic Demand

7.4.2. E < 1: Inelastic Demand

7.5. Substitute

7.5.1. Cross-elasticity of Demand

7.6. Complements

8. 3: Determine Costs

8.1. Variable Costs

8.2. Fixed Costs

8.2.1. Average Fixed Costs

8.3. Break-Even Analysis

8.3.1. Contribution per Unit

8.3.2. Target Profit

8.3.2.1. Added to FC

8.3.2.2. Added to VC on a per-unit basis

8.4. Marginal Analysis

8.4.1. Marginal Costs

8.4.2. Marginal Revenue

8.4.3. MC = MR

9. 4: Evaluate the Pricing Environment

9.1. Economy

9.1.1. Recession

9.1.2. Inflation

9.2. Competition

9.2.1. Price Wars

9.2.2. Industry Structures

9.2.2.1. Oligopoly

9.2.2.2. Monopoly

9.2.2.3. Perfect Competition

9.3. Consumer Trends

10. 5: Choose a Price Strategy

10.1. Based on Cost

10.1.1. Cost-Plus pricing

10.2. Based on Demand

10.2.1. Target Costing

10.2.2. Yield Management Pricing

10.3. Based on Competition

10.4. Based on Customer Needs

10.4.1. Value Pricing / Everyday Low Pricing

10.5. New Product Pricing

10.5.1. Skimming Price

10.5.2. Penetration Pricing *hihihi*

10.5.3. Trial Pricing

11. 6: Develop Pricing Tactics

11.1. Pricing for Individual Products

11.1.1. Two-Part Pricing

11.1.2. Payment Pricing

11.2. Pricing for Multiple Products

11.2.1. Price Bundling

11.2.2. Captive Pricing

11.3. Distribution Based Pricing

11.3.1. Free on Board (FOB)

11.3.1.1. FOB origin

11.3.1.2. FOB delivered

11.3.2. Base-point Pricing

11.3.3. Uniform Delivered Pricing

11.3.4. Freight absorption pricing

11.4. Discounting for Channel Members

11.4.1. List Price / Recommended Retail Price

11.4.2. Trade or functional discounts

11.4.3. Quantity Discount

11.4.3.1. Cumulative Quantity Discount

11.4.3.1.1. Rebate

11.4.3.2. Non-cumulative quantity discount

11.4.4. Cash Discount

11.4.5. Seasonal Discount