The Sage Course Companion on Marketing is an accessible introduction to the subject that will help readers to extend their understanding of key concepts and enhance their thinking skills in line with course requirements. It provides support on how to revise for exams and prepare for and write assessed pieces. Readers are encouraged not only to think like a marketer but also to think about the subject critically. It is much more than a revision guide for undergraduates; it is an essential tool that will help readers take their course understanding to new levels and help them achieve success in their undergraduate course.

Demand Pricing

Demand pricing

Demand pricing is the process of calculating price on the basis of the relative demand for the product, as evidenced by the elasticity of demand characteristics of the product.

Demand pricing is the most customer-orientated form of pricing since it derives entirely from consumer demand. The marketer begins by assessing what the demand will be for the product at different price levels. This is a job for market researchers, who will find out what customers might expect to pay for the product. Different people have different views on what represents value for money, and will have different perceptions about the price: therefore there will be a spread of responses. This will lead to the development of the kind of chart shown in Table 2.2.

Table ...
  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles