Major Pricing Strategies
{"Image DocumentName": "Major Pricing Strategies", "Image ImageDescription": "Customer Value-Based Pricing. Understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. The price the company charges will fall somewhere between one that is too low to produce a profit and one that is too high to produce any demand. Figure 10.1 summarizes the major considerations in setting price. Customer perceptions of the product\u2019s value set the ceiling for prices. If customers perceive that the product\u2019s price is greater than its value, they will not buy the product. Likewise, product costs set the floor for prices. If the company prices the product below its costs, the company\u2019s profits will suffer. In setting its price between these two extremes, the company must consider several external and internal factors, including competitors\u2019 strategies and prices, the overall marketing strategy and mix, and the nature of the market and demand. Copyright \u00a92014 by Pearson Education, Inc. All rights reserved.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}