CHAPTER 19
Pricing Concepts
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 404
Lecture Outline
IRM, p. 405
Discussion Starters
IRM, p. 413
Class Exercises
IRM, p. 415
Semester Project
IRM, p. 418
Answers to Developing Your Marketing Plan
IRM, p. 419
Answers to Discussion and Review Questions
IRM, p. 420
Comments on the Cases
IRM, p. 422
Video Case 19.1
IRM, p. 422
Case 19.2
IRM, p. 423
Examination Questions: Essay
Cognero
Examination Questions: Multiple-Choice
Cognero
Examination Questions: True-False
Cognero
PowerPoint Slides
Instructor’s website
Note: Additional resources may be found on the accompanying student and instructor websites at
PURPOSE AND PERSPECTIVE
In this chapter, we focus first on the nature of price and its importance to marketers. We then consider
some characteristics of price and nonprice competition. Next, we discuss several pricing-related concepts,
such as demand, elasticity, and break-even analysis. Then we examine in some detail the numerous
factors that can influence pricing decisions. Finally, we discuss selected issues related to pricing products
for business markets.
LECTURE OUTLINE
I. Importance of Price in Marketing
A. Price is the value paid for a product in a marketing exchange.
1. Many factors influence the assessment of value. In most situations the price is apparent to
buyer and seller; however, price does not always take the form of money paid.
2. Barter is the trading of products and is the oldest form of exchange in which money may or
may not be involved.
3. Buyers’ interests in price relates to their expectations about the usefulness of a product or the
satisfaction they may derive from it.
4. Buyers must decide whether the utility gained in an exchange is worth the buying power
sacrificed.
B. The Importance of Price to Marketers
1. Price plays an important role in marketing because it is often the only marketing mix variable
that can be changed quickly to respond to shifts in demand or to competitors’ actions.
