Principles of Marketing, 17/e

11 Pricing Strategies Additional Considerations

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In the previous chapter, you learned that priceis an important marketing mix tool for both creating and capturing customer value. You explored the three main pricing strategies—customer value–based, cost-based, and competition-based pricing—and the many internal and external factors that affect a firm’s pricing decisions. In this chapter, we’ll look at some additional pricing considerations: new product pricing, product mix pricing, price adjustments, and initiating and reacting to price changes. We close the chapter with a discussion of public policy and pricing.

For openers, let’s examine Apple’s premium pricing strategy. Apple sets its prices substantially above those of even ...