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LEARNING OBJECTIVES In this chapter, we will address the following questions: 1. How do health care consumers, providers, and companies process and evaluate prices? 2. What are the different methods and seven steps for setting an initial price for a product or service? 3. How should prices be adapted to meet varying circumstances and opportunities? 4. When should an organization initiate a price change? 5. How should an organization respond to a competitor's price change? 6. What influence do government and private payers have on pricing decisions