In Figure 17.8, there is a checklist of issues to be considered when setting an initial price. Choose another important type of price-setting or pricing policy decision that has been described in this book and construct and justify a checklist of issues for that type of decision.

 

Checklist of Issues to Consider in Setting an Initial Price 1. Specify the product's target market or market segment. 2. Determine the product's reference value. 3. Identify positive and negative differentiation factors. 4. Estimate the customer's value of each of the differentiation factors. 5. Check for factors that would indicate if a skimming or penetration strategy should be used. 6. If an in-line strategy is used, consider which positive differentiation value could be convincingly demonstrated. Figure 17.8