国际营销英语Unit 5 Price and pricing.ppt

(10) Contribution margin-based pricing Contribution margin-based pricing maximizes the profit derived from an individual product, based on the difference between the products price and variable costs (the products contribution margin per unit), and on one’s assumptions regarding the relationship between the product’s price and the number of units that can be sold at that price. The products contribution to total firm profit (i.e. to operating income) is maximized when a price is chosen that maximizes the following: (contribution margin per unit) X (number of units sold). (11) Psychological p