Answered: Which pricing objectives are…

Which pricing objectives are profit-oriented, and which objectives are sales-oriented? What factors do organizations consider when making pricing decisions?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter20: Setting Prices

Section: Chapter Questions

Problem 2DRQ

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Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

Which pricing objectives are profit-oriented, and which objectives are sales-oriented? What factors do organizations consider when making pricing decisions? Explain the difference between a penetration and skimming pricing strategy. Illustrate your answer with at least ONE (1) real-life example, preferably in the Philippines.

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