Set prices a few dollars or cents below an even number to meet view of how customers perceive this price
Demand Approaches: Odd-Even Pricing
Estimate price target customers willing to pay e.g. Marbury Collection basketball sneakers (e.g. cause marketing example)
Demand Approaches: Target Pricing
Marketing of two or more products in a single package price based on view consumers value bundle more than individual items (do not have to shop separately or enhanced satisfaction one gives to other) i.e. given lower total costs to buyer and lower marketing costs to seller
Demand Approaches: Bundle Pricing
Charging different prices to maximize revenue for different capacity levels at different times based on matching supply and demand. Capacity management using price by different times of day, week, or season e.g. car rentals, hotels, airlines....
Demand Approaches: Yield Management Pricing
The percentage change in quantity related to a percentage change in price (in other words, price sensitivity or the measurement of how sensitive consumer demand and the company's revenues are to changes in product's price)
Price Elasticity of Demand
Slight decreases in price results in relatively large or significant increase in quantity demanded e.g. soft drinks and snack food
Elastic Demand (flat curve)
Slight increases or decreases in price will not significantly affect demand or units sold e.g. necessities
Inelastic Demand (Steep Curve)
The total money received from the sales of a product
Total Revenue (TR)
is the total expense incurred by a firm in producing and marketing a product.______is the sum of fixed cos and variable cost.
Total Cost (TC)
is the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sole. For example, as the quantity sold doubles, the variable cost doubles. examples are the direct labor and direct materials used in producing the product and the sales commissions that are tied directly to the quantity sold.