About This Chapter
Price Setting Strategies for Businesses - Chapter Summary
From the pricing decision-making process to cost-volume-profit analysis methods, this chapter covers several aspects of pricing strategies utilized by businesses. You can study calculations, formulas and methods used in determining, setting and analyzing prices.
You'll also be able to find out how a pricing strategy is chosen, how a break-even point is calculated and how the cost-volume-profit analysis is applied. Once you have reviewed each of the lessons contained in this chapter, you should be able to:
- Relate different types of pricing strategies
- Understand pricing objectives and how pricing strategy relates to the marketing mix
- Discuss how the correct price for products is determined
- Explain the different objectives impacting pricing decisions
- Apply the formula used to calculate the break-even point
- Describe the use of cost-volume-profit (CVP) analysis
- Use a case study to demonstrate the CVP analysis method
Each lesson was created by experienced instructors who guide you easily through every topic and the 24/7 accessibility makes studying simple and convenient. Use your Dashboard to track your progress through the chapter and contact instructors with a short online form with any questions. Quickly measure how much you have learned by taking brief self-assessment quizzes as you complete your review of each lesson.
1. Pricing Strategy Methods: Types & Examples
In this lesson we will review some of the common approaches used for pricing and explain how an understanding of a product and consumer behavior influences the decision.
2. Pricing Objectives: How Firms Decide on a Pricing Strategy
After watching this video, you should understand pricing strategy as it relates to the marketing mix. The three types of pricing strategies are profit-maximization, sales-oriented and status quo.
3. Price Selection: How Businesses Select the Correct Price for Products
Marketing managers need to select the correct price for their product as part of the marketing mix. The three pricing strategies are price skimming, penetration pricing and status quo.
4. Pricing Decisions: Profit-Oriented, Sales & Status Quo
Companies need to determine the main objective of their pricing strategy. The different objectives can be based on profit, sales, competition or customers. The end result should be customer satisfaction.
5. How to Calculate the Break-Even Point - Definition & Formula
The break-even point is an important measurement in understanding the health of a company. This lesson explains what the break-even point is, how the break-even point is calculated and the formula for determining the break-even point.
6. Cost-Volume-Profit Analysis & Income Statements
Cost-volume-profit (CVP) analysis is one way for management to determine the relationship that exists between a company's costs, its revenue, and its sales volume. In this lesson, we'll take a look at how a restaurant might use CVP to look at its revenue.
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Other chapters within the VCE Accounting: Exam Prep & Study Guide course
- Establishing a Small Business
- Funding for Small Businesses
- Budgeting in Business
- Overview of Service & Trading Businesses
- Business Analysis Overview
- Financial Statements Overview
- Overview of Accounting Basics
- Overview of the Accounting Cycle
- Internal Control Use in Accounting
- Technology in Accounting
- Double-Entry Accounting Overview
- Journals in Accounting
- Accrual-Based Accounting System
- VCE Accounting Flashcards