BUS 114 Introduction to Marketing
Chapter 11 Pricing Products
Use these steps to set your final price for your product/service:
1. Think about your customers and competitors. Based on your target market and
competitors, state which pricing approach you’ll use.
(Strongly Recommend you review Chapter 8, Team In Class Activity, “Market Product Grid”
that you previously generated.)
2. List two pricing objectives and set three possible prices for product and its target
market.
3. Assume a fixed cost and unit variable cost (see Fig. 11-4).
Then:
a) Calculate the breakeven points for each possible price
b) Plot a breakeven chart for the three prices in step 2 (like in figure 11-6)
4. Using your best judgment, select one of these prices as your final price and state
why?
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