Monday, May 1, 2017 – Monday, April 30, 2018
4.5CREDITSBusiness Management and Organization
This CPE course explores alternative strategies for one of the most important decisions made by managers: the pricing of its products or services. This course includes in-depth information on the price elasticity of demand, and factors affecting price elasticity. It examines the profit-maximization model and its limitations, as well as procedures for price optimization.
- Determine pricing decisions for maximizing profit.
- Identify pricing strategies and the objectives of market skimming, premium pricing, penetration pricing, loss leaders, product bundling/optional extras and product differentiation to appeal to different market segments.
- Price elasticity of demand
- Factors affecting price elasticity
- The profit-maximization model
- Procedure for establishing the optimum price of a product
- The tabular approach
- Limitations of the profit-maximization model
- Pricing strategies based on cost: Total cost-plus pricing
- Marginal cost-plus pricing
- Criticism of marginal cost-plus pricing
- Marketing-based pricing strategies
- The product life cycle