Kotler, Philip, and Kevin Lane Keller. Marketing Management . Prentice Hall/Pear
ID: 423558 • Letter: K
Question
Kotler, Philip, and Kevin Lane Keller. Marketing Management. Prentice Hall/Pearson, 2012. Chapter 14
Think about the pricing methods described in this chapter - Markup procing, target-return pricing, perceived-value pricing, value pricing, going-rate pricing, and auction type pricing. As a consumer, which do you prefer to deal with? Why? if the average price were to stay the same, which would you prefer a firm to do: 1 - set one price and not deviate or 2 - employ slightly higher prices most of the year but offer slightly discounted prices or specials for certain occasions?
Explanation / Answer
As being a customer the perceived value pricing method would be the pricing method that i would perefr most. Price is actually something which one compensate to get some utility. In other words what one perceive of vallue of a something in terms of money is price. If other methods are used they could end up charging a price which could be much more than the value that i perceive of the good. Markup price involves adding a mark up to the costs, the markup coul be high in my perception to the value. Target returning involves setting up a target of sales/prfot then fixing the price accordingly so it actually consider what the firms want but not what consumer percive of the good. Auction style involves setting price of the hiighest paying consumer which obviously a lower paying consumer will not perfer. Thus over all it is the perceived value pricing which would eb prefer most.
The second method of pricing would be prefer over the other if the good is durable and can be stored for long period. This will make the csutomer purchase in discounted period enough stock to be used in other part.
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