Developing Pricing Strategies and Programs.ppt

Developing Pricing Strategies and Programs What is a Price? Narrowly: price is the amount of money charged for a product or service. Broadly: price is the sum of all the values that the consumers exchange for the benefit of having or using the product or service. Pricing Mechanism Throughout most of history, prices were set by negotiation between buyers and sellers. At the end of 19th century, the development of large-scale retailing → fixed price policies, i.e. setting one price for all buyers. At the end of 20th century, the Internet → dynamic pricing, i.e. charging different prices dependin