Pricing. Pricing Objectives Pricing Methods Pricing Strategies. Can Firms Control Their Prices?. Supply and demand Price and non-price competition Buyer’s perception of price. Pricing Objectives. Survival Profit Maximization Target Return on Investment (ROI) Market Share Goals
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Potential for higher profits
Management must be able to estimate demand at different price levels, which may be difficult to do accurately
Segments must be separate enough so that those that buy at lower prices can’t sell to those who buy at higher pricesAdvantages and Disadvantages of Demand-Based Pricing