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Chapter 12Pricing Products: Pricing Considerations, Approaches, and Strategy“The real issue is value, not price.”-Robert T. Lindgren ?2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChapter ObjectivesOutline the internal factors affecting pricing decisions, especially marketing objective, marketing-mix strategy, costs, and organizational considerations Identify and define the external factors affecting pricing decisions, including the effects of the market and demand, competition, and other environmental elements ?2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChapter ObjectivesContrast the differences in general pricing approaches, and be able to distinguish among cost-plus, target profit pricing, value-based pricing, and going rate Identify the new product pricing strategies of market-skimming pricing and market-penetration pricing ?2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensChapter ObjectivesUnderstanding how to apply pricing strategies for existing products, such as price bundling and price adjustment strategies Discuss the key issues related to price changes, including initiating price cuts and price increases, buyer and competitor reactions to price changes, and responding to price changes ?2006 Pearson Education, Inc. Marketing for Hospitality and Tourism, 4th editionUpper Saddle River, NJ 07458 Kotler, Bowen, and MakensPricePrice is the amou
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