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Pricing:
Understanding and
Capturing Customer Value
Topic Outline
What is a Price?
Major Pricing Strategies
Other Internal and External Considerations
Affecting Price Decisions
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Cost-Based Pricing
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Cost-Based Pricing
Cost-Based Pricing
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Cost-Plus Pricing
Cost-plus pricing adds a standard
markup to the cost of the product
Benefits
o Sellers are certain about costs
o Price competition is minimized
o Buyers feel it is fair
Disadvantages
o Ignores demand and competitor prices
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Competition-based pricing
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Pure competition
Monopolistic competition
Oligopolistic competition
Pure monopoly
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Economic conditions
Government
Social concerns
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