Chapter 17: Pricing Decisions

Chapter Summary:

In this chapter we begin a two-part discussion of the pricing component of the Marketer's Toolkit. We start by defining price and see how it has different meaning for different parties to a transaction. We next look at why price is important to marketing and to the organization. Finally, considerable attention is given to the internal and external factors that influence pricing decisions.

Key Issues:

  • What is Price?
  • Importance of Pricing
  • Factors Affecting Pricing Decisions
  • Internal Factors
  • External Market Factors

Links to Cited References:

(note: Some links may no longer be active, if this is the case check Accessing Marketing Stories for hints on accessing.)

  1. "How a $2 Bottle Transformed the Wine Industry," MSNBC, May 28, 2007 http://www.msnbc.msn.com/id/18868861/
  2. "Free Love." Trendwatching, March 2008. http://www.trendwatching.com/trends/freelove.htm
  3. Anderson, C., "Free! Why $0.00 Is the Future of Business," Wired, February 25, 2008. http://www.wired.com/techbiz/it/magazine/16-03/ff_free
  4. Martin, J. "Raising Prices, Keeping Customers," Fortune, September 13, 2007. http://money.cnn.com/2007/09/10/smbusiness/raise_prices.fsb/index.htm
  5. Regan, K., "Rumbles of Wireless Price War Getting Louder," E-Commerce Times, February 20, 2008. http://www.ecommercetimes.com/story/61750.html
  6. Apple website. http://www.apple.com/hotnews/openiphoneletter/
  7. Leegin Creative Leather Products vs. Psk Inc., U.S. Supreme Court, June 28, 2007. http://www.supremecourtus.gov/opinions/06pdf/06-480.pdf
  8. Pereira, J., "Price-Fixing Makes Comeback After Supreme Court Ruling," Wall Street Journal, August 18, 2008. http://online.wsj.com/article/SB121901920116148325.html