1. BPTO Model
The Model relates price to competing brands in the market by asking existing consumers what brand they will buy among several choices in a simulated shop display.

2. Exhibit 6-13: Price choices Product Price 1 A P2. 00 B P2. 50 C P2
Exhibit 6-13: Price choices Product Price 1 A P2.00 B P2.50 C P2.75 Exhibit 6-14: New Price choices Product Price 1 Price 2 A P2.00 P2.00 B P2.50 P2.75 C P2.75 P2.75

3. PRICING CRITERIA
Exhibit 6-15: Pricing criteria based on company’s objectives
Objectives When to charge When to charge
Lower Price Higher price
Sales Volume Turnover Fast Slow
Market Dominance Low High
Profit Objective Long-term Short-term

4. Exhibit 6-16: Pricing criteria based on product specifications
Product Specifications When to charge When to charge
Lower Price Higher Price
Product type Commodity Patented
Product Usage Single Use Multiple Use
Product Obsolescence Slow Fast
Product Appeal Price Sensitive Price Insensitive
Product Method Mass Production Custom Made
Production Quantity Big Small
Production Capacity Excess Limited
Types of service Regular Extra
Perceived Value Overpriced Underpriced

5. PRICE ADJUSTMENT
When to Increase Price
Inflation

6. Foreign Exchange

7. Shortages
US$750
US$1,080

8. Product Repositioning
OLD
NEW

9. When to Cut Price
Lower Cost
Falling Market Shares
Excess Capacity
Excess Inventory
Socialized Pricing (Price Discrimination)

10. New Market Segment
Availability of New Substitutes

11. Subsequent Sales
Competitive Trends

12. Phase-out Products Damage Products When to Sell Below Cost
Perishable Goods
Phase-out Products
Damage Products