Instructor’s Manual for Principles of Marketing
01/12/23 1
, Instructor’s Manual for Principles of Marketing
Chapter 12
Pricing Products and Services
Chapter Outline
12.1 Pricing and Its Role in the Marketing Mix
Learning Outcomes
Define pricing.
Explain pricing and its role in the marketing mix.
Explain the psychology of pricing.
Section Outline
Pricing Defined
Elements of Pricing
Marketing in Practice: Upside
The Psychology of Pricing
Price Anchoring
Artificial Time Constraints
Price Appearance
Price Gouging
Careers in Marketing: Pricing Analyst
Lecture Tidbit:
Crumbl cookies cost $4 each. While some may argue that is a way-overpriced cookie, their size,
variety, and quality ingredients signal a higher quality cookie-eating experience. Crumbl’s menu
is constantly changing to offer customers new flavors—sometimes on a weekly basis. In
addition, the size is generous and big enough to share.
Source: https://crumblcookies.com/
Section 12.1 Summary
In this section of the chapter, students explore the definition of pricing and the role it plays in
the marketing mix in signaling value. The elements of pricing include price as an indicator of
value, price in the marketing mix, and the profit equation.
Total Costs=¿Costs+Variable Costs
In addition, the psychological factors that influence consumers as it relates to pricing are
explored, including price anchoring, artificial time constraints, price appearance, and price
gouging.
01/12/23 2