MARKETING
MARKETING
9th Edition
ISBN: 9780324362084
Author: Lamb
Publisher: CENGAGE L
bartleby

Concept explainers

Question
Book Icon
Chapter 21, Problem 1LO
Summary Introduction

To discuss: The procedure that are used to set the correct price.

The strategy used by the companies to set the price of their products and services is known as the pricing strategy.

Expert Solution & Answer
Check Mark

Explanation of Solution

The major steps that are involved in setting the right price are as follows:

  • The pricing goals has to be established
  • Estimations of the costs, demands, and profits has to be done.
  • Selecting the price policy in order to find the base price.
  • The base price has to be finely tuned along with the tactics in pricing.

The long-term pricing strategy framework has been established for a service or good. The three major types of price policies are skimming, status quo pricing, and penetration pricing.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
What are the benefits of Price skimming?
What are the three possible starting points for the process of setting an initial price as discussed.
Explain briefly the concept of shadow pricing and comment on the usefulness and it's limitations
Knowledge Booster
Background pattern image
Marketing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, marketing and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning
Text book image
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:9781337407595
Author:Lamb
Publisher:Cengage