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9-1
Learning Objectives
9-1. Identify the three major pricing
strategies and discuss the importance
of understanding customer-value
perceptions, company costs, and
competitor strategies when setting prices.
9-2. Identify and define the other
important external and internal
factors affecting a firms pricing
decisions.
9-3. Describe the major strategies for
pricing new products.
Copyright 2017 Pearson Education, Ltd. 9-2
Learning Objectives
9-4. Explain how companies find a set
of prices that maximizes the
profits from the total product mix.
9-5. Discuss how companies adjust
their prices to take into account
different types of customers and
situations.
9-6. Discuss the key issues related to
initiating and responding to price
changes. Copyright 2017 Pearson Education, Ltd. 9-3
First Stop: Amazon versus
Walmart
A Price War for Online Supremacy
Walmart versus
Amazon online:
Achieving online
supremacy will
take more than
just waging and
winning an online
price war. The
spoils will go to
the company that
delivers the best
overall online Copyright 2017 Pearson Education, Ltd. 9-4
Learning Objective 9-1
Identify the three major pricing strategies
and discuss the importance of
understanding customer value
perceptions, company costs, and
competitor strategies when setting prices.
AMCs Cinema
Suites are
adding
amenities and
charging
more.
Caterpillar
dominates the
heavy
equipment
industry
despite
charging
premium
Copyright 2017 Pearson Education, Ltd. 9 - 15
Learning Objective 9-1
Summary
The three major pricing strategies
include
Customer value-based pricing
Cost-based pricing
Competition-based pricing
Customer value perceptions,
company costs and competitor
strategies are important
considerations when setting prices.
Copyright 2017 Pearson Education, Ltd. 9 - 16
Learning Objective 9-2
Identify and define the other important
external and internal factors affecting a
firms pricing decisions.
Price is an important
competitive tool for
DirecTV and other
cable providers.
Samsung has
used low
initial prices
in emerging
mobile device
markets.
Nearly 77
percent of
Keurigs
sales come
from its K-
Cup portion
packs.
With
Amazons
Price Check,
consumers
can get
instant
product and
price
Copyright 2017 Pearson Education, Ltd. 9 - 44
International Pricing