PRICING. Comprehension check

UNIT 14

Comprehension check.

SUPPLEMENTARY READING

SPEECH PRACTICE

1. Speak on the meaning and use of price.

2. Dwell on price and non-price competition.

3. Does everything have a price? Are there any things you would not do/buy regardless of price? (Remember: prices and money are not synonyms; prices may be non-monetary).

BUYERS’ PERCEPTIONS OF PRICE

In setting prices, managers should consider the price sensitivity of people in the target market. How important is price to them? Is it always “very important?” Members of one market segment may be more influenced by price than members of another. For a particular product, the price may be more important to some buyers than to others. The importance of price to buyers will also vary depending on the product. For example, buyers may be more price sensitive when purchasing gasoline than they are when purchasing jeans.

Buyers will accept a different range of prices for different products, that is, they will tolerate a narrow range for certain items and a wider range for others. Management should be aware of these decisions of acceptability and the products to which they apply. The firm should also take note of buyers’ perceptions of a given product in relation to competing products. A premium price may be appropriate if a product is considered superior to others in that category or if the product has inspired strong brand loyalty. On the other hand, if buyers have a fairly negative view of a product, a lower price may be necessary.

Sometimes buyers relate price to quality. They may consider a higher price to be an indicator of higher quality. Managers involved in pricing limits should determine whether this outlook is widespread in the target market. If it is, a higher price may improve the image of a product and, in turn, make the product more desirable.

1. How do you understand the expression ‘price sensitivity’?

2. How are you influenced by prices?

3. Do you relate price of a product to quality or to its image?

Grammar: Gerund: forms and functions

Assignment 1. Read and translate the following words and phrases.

pricing – ціноутворення; ~ objective – мета ціноутворення; ~ method – метод ціноутворення; ~ strategy – стратегія ціноутворення; cost-based ~ – ціноутворення на основі витрат; demand-based ~ – ціноутворення на основі попиту; competition-based ~ – ціноутворення на основі конкуренції; penetration ~ – встановлення ціни з метою проникнення на ринок; odd ~ – встановлення ціни з непарним числом, напр. 4.99 замість 5; multiple-unit ~ – встановлення нижчої ціни під час покупки декількох одиниць товару; prestige ~ – встановлення ціни на престижну продукцію;

market saturation – насичення ринку;

share of the market – частка ринку;

to differentiate – виокремлювати /відрізняти/ індивідуалізувати

markup – надбавка;

total cost – загальна вартість/собівартість; ~ revenue – загальний прибуток;

to add – додавати;

breakeven analysis – аналіз беззбитковості;

costs – витрати; fixed ~ – постійні/фіксовані витрати; variable ~ – змінні витрати; to recover the ~ – покривати витрати;

price skimming – встановлення найвищої ціни з метою найшвидшого покриття витрат; ~ lining – вирівнювання цін;

subjective perception – суб’єктивне сприйняття;

discounting/price reduction – дисконтування; зниження ціни;

discount – знижка; trade ~ – знижка посередникам/роздрібним торговцям quantity ~ – знижка за кількістю купленого товару; seasonal ~ – сезонна знижка.

Assignment 2. Read and translate the following text.

Дата добавления: 2014-11-29