Www.mhhe.com/fourps For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Price.

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For use only with Perreault/Cannon/McCarthy or Perreault/McCarthy texts. © 2008 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Price Setting in the Business World CHAPTER SEVENTEEN

CH 17: Price Setting in the Business World CH 16: Pricing Objectives and Policies Cost-oriented price setting approaches Demand-oriented price setting approaches Other price-setting issues Price Setting and Strategy Planning (Exhibit 17-1)

Some Firms Just Use Markups (Exhibit 17-2)

Average Cost Pricing Is Common and Can Be Dangerous (Exhibit 17-3)

An Example Shows Cost Relations (Exhibit 17-4)

Break-Even Analysis Can Evaluate Possible Prices (Exhibit 17-8)

Marginal Analysis Considers Both Costs and Demand (Exhibit 17-9)

Profit Maximization with Total Revenue and Total Cost Curves (Exhibit 17-10)

Types of Demand-Oriented Pricing Demand- Backward Demand- Backward Price Lining Odd-Even Psychological Value-in-Use Auctions Sequential Reductions Sequential Reductions Reference Leader & Bait Leader & Bait Prestige Demand- Backward Demand- Backward More Demand-Oriented Methods