Ch 10: Product Pricing & Selling

About This Chapter

Use our video lessons and quizzes to help you understand how companies decide on a pricing strategy. Learn about supply and demand, elasticity, environmental factors that affect pricing, and more.

Product Pricing and Selling - Chapter Summary

In this chapter, our video instructors explain how companies decide on a pricing strategy. You'll be introduced to price elasticity, or how the market is affected by supply and demand. This chapter will also discuss what motivates mark-up and break-even pricing.

You'll learn how prices are determined and affected by environmental factors. As you progress through this chapter, you'll study the economic factors of pricing. After you complete this chapter, you should be able to:

  • Describe how businesses select the correct price for products
  • Understand how firms decide on a pricing strategy
  • Understand the role of consumer perception in a pricing strategy
  • Describe how supply and demand affect price
  • Understand the motivating factors behind pricing cost
  • Differentiate between profit-oriented, sales, and status quo pricing decisions

Our online lessons on product pricing and selling are focused around a professional, experienced instructor's brief, yet thorough, video presentation. Each lesson also comes with a self-assessment quiz, which helps you track how well you've learned the lesson, and a written transcript that provides an alternative way for you to access the information in the lesson. Easy-to-use video tools include tags that allow you to toggle back and forth between the most important points in this lesson and links connected to the key words and phrases that take you to text lessons for even more in-depth study.

8 Lessons in Chapter 10: Product Pricing & Selling
Test your knowledge with a 30-question chapter practice test
Pricing Objectives: How Firms Decide on a Pricing Strategy

1. 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.

Pricing Strategy and Consumer Perception

2. Pricing Strategy and Consumer Perception

Consumers' perceptions of products rely heavily on the pricing strategy that is chosen by the marketing manager. Price will impact not only consumer perception but also profit and speed of product adoption.

Price Elasticity: Understanding Supply and Demand

3. Price Elasticity: Understanding Supply and Demand

Marketing managers need to understand the basics of supply and demand in order to develop the precise price for their product. Inelastic and elastic demand explains how sensitive consumers are to price and how much flexibility it allows the marketing team.

Pricing Cost: What Motivates Mark-up and Break-Even Pricing

4. Pricing Cost: What Motivates Mark-up and Break-Even Pricing

The marketing mix consists of the four Ps (product, place, promotion and price). The marketing manager has to decide what type of pricing strategy to use for the overall marketing plan. The options depend on how cost is determined.

Price Selection: How Businesses Select the Correct Price for Products

5. 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.

How Prices Can Be Adjusted in Response to Environmental Factors

6. How Prices Can Be Adjusted in Response to Environmental Factors

Marketers have the ability to fine-tune the base price of products in the marketing mix. They can use discounts, rebates, and allowances to temporarily change the price to increase sales and profits.

Economic Factors of Pricing and Pricing Strategy

7. Economic Factors of Pricing and Pricing Strategy

Economic factors can alter companies' pricing strategies. Prices need to be flexible, especially in response to inflation and recessions. There are numerous strategies that can be employed to combat economic changes and lead to corporate sales and profits.

Pricing Decisions: Profit-Oriented, Sales & Status Quo

8. 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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