文档介绍：Unit Fourteen pricing for international markets
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2009-11-22
Unit Fourteen pricid is perfectly inelastic
0< Elasticity < 1,The demand is relatively inelastic
Unit Fourteen pricing for international markets
3. Forces Influencing pricing(影响定价的因素)
External forces - customer demand
Price elasticity of demand (价格需求弹性)

“ SPQR” is suitable for what type of products?
Elasticity
Examples
>1
luxuries
=1
do’s exist
=0
cremation
0<X<1
daily necessities
Unit Fourteen pricing for international markets
3. Forces Influencing pricing(影响定价的因素)
External forces – competition and environment
Competition
- If the business is under the condition of monopoly, it has price-setting power;
- What if under the condition of perfect competition?
- What if somewhere in between?
Unit Fourteen pricing for international markets
3. Forces Influencing pricing(影响定价的因素)
External forces – competition and environment
Environment
Environment have an important impact on prices
- Economy ( is booming or in recession)
- Legislation (constrain freedom to change prices)
Unit Fourteen pricing for international markets
3. Forces Influencing pricing(影响定价的因素)
Internal forces – business objectives
Business objectives
Pricing should be consistent with the overall objectives
- To maximize profits
- To maintain or enhance market share
- To achieve a target sales level
- To discourage or eliminate competition
Unit Fourteen pricing for international markets
3. Forces Influencing pricing(影响定价的因素)
Internal forces – cost
cost
Fixed cost: are the costs that are not directly related to the level of output. (building, fixed assets, overhead…)
Variable cost: vary directly with the level of output.
(raw materials, direct labor cost…)
Unit Fourteen pri