The document discusses pricing strategies and key considerations for setting prices. It defines pricing strategy as the method companies use to price products and services. It notes companies should consider the lowest price willing to sell for, highest price customers will pay, sensitivity to price, and how the price compares to competition. It also defines relevant terms like lowest, sell, sensitive to price, and compare in the pricing context.

1. Product
Price
Place
Promotion

2. Price is the value agreed by the buyer and
the seller in an exchange.

3. The purchasing decision is based on how consumers
perceive the price, and what they are willing to pay

4. $1,800 $600
Why do people pay different amounts of money for
a similar product?
$150

5. Pricing strategies
Pricing strategy refers to the method companies use
to price their products or services.

6. Some questions you
should ask yourself are:
•What would be the lowest price you are willing to
sell your product?
•What would be the highest price that consumers
would be willing to pay?
•How sensitive to price are your customers?
•How does your price compare to the competition?

7. Let’s review some new vocabulary
Lowest: superlative form of low.
Lowest
Highest

8. Let’s review some new vocabulary
Sell: give or hand over (something) in exchange for
money.

9. Let’s review some new vocabulary
Sensitive to price: is the degree to which
the price of a product affects consumers' purchasing
behaviors.

10. Let’s review some new vocabulary
To compare: to examine or look for the difference
between two or more things

11. Can we do some sentences with each word?
Lowest: My store has the lowest prices
Sell: I want to sell my computer
Sensitive to price: My sister is very sensitive too
expensive prices.
To compare: I need to compare prices before I
buy something.

12. Thank you!