Marketing Management, 16th Edition

Summary

1. Price is the only marketing element that produces revenue; the others produce costs. Pricing decisions have become more challenging in a changing economic and technological environment.

2. Purchase decisions are based on how consumers perceive prices, rather than just on the offering’s stated price. Understanding how consumers arrive at their perceptions of prices—and, specifically, the role of reference prices, price–quality inferences, and price endings—can help the company set the optimal market price.

3. In setting pricing policy, a company follows a six-step procedure. It selects its pricing objective. It estimates the demand curve, the probable quantities it will sell at each possible price. It estimates how its costs vary at different ...