Chapter 3
Capturing Customer Value: Price to Exchange
![Price and Exchange](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15960.jpg)
The concept of price in marketing has significantly evolved over the years. Traditionally, price was viewed merely as a monetary amount customers…
![The 5 c's of Pricing](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15961.jpg)
The 5 Cs of pricing provide a comprehensive framework for strategic pricing decisions. They include:
Company Objectives: The company's goals…
![External Considerations Affecting Price Decisions](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15963.jpg)
External factors that significantly impact a firm's pricing decisions are as follows:
Market Structures: In a perfectly competitive market,…
![Pricing Methods](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15964.jpg)
The three primary pricing methods that firms use to develop their pricing strategy are:
Cost-based Pricing: In this method, prices are set by…
![Pricing Tactics I](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15966.jpg)
Pricing tactics are short-term strategies businesses use to sell their offerings to meet specific objectives such as boosting sales, attracting new…
![Pricing Tactics II](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15967.jpg)
Some more pricing tactics include the following.
Rebate Pricing involves offering customers a partial refund after they have purchased a product…
![Product Mix Pricing Strategies I](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15969.jpg)
Product mix pricing strategies guide businesses in optimizing profits across their product lines, each tailored to market needs and consumer…
![Product Mix Pricing Strategies II](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/16757.jpg)
The product mix pricing strategies are:
Product Line Pricing allows a company to offer a range of similar products that vary in quality, features, or…
![Price Adjustment Strategies II](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15971.jpg)
Price adjustment strategies also vary based on customer demand, location, and competition.
• Dynamic and Internet Pricing is a strategy where…
![Price Changes](https://cloudfront.jove.com/files/media/science-education/science-education-thumbs/15972.jpg)
Price cuts and increases are significant business strategies influencing profitability, market share, and customer perception.
Price Cuts:
Price cuts…