Metrics covered in this chapter:
Percent Good Value
Price Elasticity of Demand
Optimal Prices, Linear and Constant Demand
“Own,” “Cross,” and “Residual” Price Elasticity
“The cost of . . . lack of sophistication in pricing is growing day by day. Customers and Competitors operating globally in a generally more complex marketing environment are making mundane thinking about pricing a serious threat to the firm’s financial well being.”1
A full-fledged evaluation of pricing strategies and tactics is well beyond the scope of this book. However, there are certain key metrics and concepts that are fundamental to the analysis of pricing alternatives, and this chapter addresses ...