Price

• Some firms don’t get to choose their price because:

  -they are very small

  -the market is very competitive

  -goods are identical to competitors
• Some options for pricing are:

  -high prices, sell fewer

  -low prices, sell more

  -start low then raise the price

  -start high then lower the price

  -change the price whenever costs change

  -change different prices to different customers
• Influences on pricing strategy:

  -competition

  -market segments

  -stage in the product life cycle

  -costs

  -branding

  -technology