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 a different meaning for different parties to a transaction.  We next look at why price is essential 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
  • Internal Factors Affecting Pricing Decisions
  • External Market Factors Affecting Pricing Decisions

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. Gregory, S., “Has Walmart’s Price Chopping Come to an End?” Time, October 5, 2010.  http://www.time.com/time/business/article/0,8599,2023857,00.html
  2. Del Rey, J., “How to Raise Prices,” Inc. Magazine, January 20, 2011.  http://www.inc.com/magazine/20110201/case-study-how-to-raise-prices.html
  3. Mangalindan, J.P., “25 Ways of Downloading Angry Birds,” Fortune, June 3, 2011.  http://tech.fortune.cnn.com/2011/06/03/25-ways-angry-birds/
  4. Bustillo, M. and A. Zimmerman, “Phone-Wielding Shoppers Strike Fear Into Retailers,” Wall Street Journal, December 15, 2010.  http://online.wsj.com/article/SB10001424052748704694004576019691769574496.html
  5. Pincott, G., “Brand Equity: What’s Price Got to Do With It?” Millward Brown, June 2011.  http://www.millwardbrown.com/Libraries/MB_POV_Downloads/MillwardBrown_POV_Brand_Equity_and_Pricing.sflb.ashx
  6. Chang, A., “99 Cents Only Stores Sued Over Price Increase,” Los Angeles Times, July 22, 2010.  http://articles.latimes.com/2010/jul/22/business/la-fi-0722-99-cents-only-20100722
  7. Olivarez-Giles, N., “Amazon Launches College Textbook Rentals Program,” Los Angeles Times, July 19, 2011.  http://articles.latimes.com/2011/jul/19/business/la-fi-kindle-textbook-20110719
  8. Hutchison, J., “The Price of a Jersey Sets Rugby Fans Against Adidas,” New York Times, August 24, 2011.  http://www.nytimes.com/2011/08/25/sports/rugby/adidas-angers-all-blacks-fans-with-price-policy.html
  9. Stone, B., “The Fight Over Who Sets Prices at the Online Mall,” New York Times, February 7, 2010.  http://www.nytimes.com/2010/02/08/technology/internet/08price.html
  10. Koenig, D., “Amazon.com to Capitulate to Macmillan Price Demand,” USA Today, February 1, 2010.  http://www.usatoday.com/tech/news/2010-02-01-amazon-macmillan_N.htm
  11. Brady, D., Essentials of International Marketing, M.E. Sharpe Inc, 2011.
Chapter 18: Setting Price
Chapter 16: Personal Selling