PRICING DECISIONS

A TERM PAPER

Presented to:

JAYSI T. CORPUZ
Subject Instructor
College of Business, Accountancy and Public Administration
ISABELA STATE UNIVERSITY
Echague, Isabela

In Partial Fulfillment
of the Requirements for the Course in
Elective 5

By:

Marie Claire P. Daracan

Mary Jane N. Castro
Jezabelle M. Dela Cruz
Cherry Anne V. Nagum

March 2013

i
CHAPTER 12

Bsba Hrdm 4-2

Group 11
ii
 TABLE OF CONTENTS

Page
TITLE PAGE……………………………………………………………..………….......……… i
TABLE OF CONTENTS……………………………………..………………………………… iii
CHAPTER
I. Introduction
A. Objectives of the study 1
B. How does price elasticity of demand affect a firm's pricing decisions? 1
II. Basic Pricing Concepts
A. General factors in determining price……………..………..………......... 3
B. Factors to consider when setting prices ……………...…………............. 3
III. Global Pricing Objectives and Strategies

A. Market skimming and financial objectives……..…..………………….... 7

B. Penetration pricing………………...……..………………..………......... 7
C. Calculating prices: cost-plus pricing and price 7
escalation………………………………………………………………..
D. Terms of sale………………………………..………..……………......... 8
IV. Environmental Influences on Pricing Decisions
A. 4 environmental influences on pricing 9
decisions……………..………..................................................................
V. Global Pricing: Three Policy Alternatives
A. Several additional pricing issues related to global marketing……...…… 10
B. Joint ventures…………………………………………………….……... 15
C. Countertrade
Categories of countertrade……………………………………………..………... 18
CONCLUSION…………………………………..………………………………...…………… 20
REFERENCES………………………………………………..………………………………… 21
CASES
Case 12-1…………………………………………...……………………..…….. 22
Case 12-2 ………………………………………………………..……..……….. 24

iii