Marketing: Creating Value for Customers.


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Chapter 12

Coy, Peter (1997), "Are Flat Rates Good Business?" Business Week, February 10, Pg. 108.

This article discusses the instances in which flat rate pricing might be a good idea. The article recommends this strategy of pricing when the natural limit to demand can be assessed. Industries for which this pricing policy may be applicable are also identified. The article also discusses instances where this strategy is inappropriate and a bad idea. America Online’s foray into flat rate pricing is also discussed.

Rutledge, John (1996), "Pricing for Growth," Forbes, October 7, Vol. 158, Iss. 8, Pg. 50.

The author strongly purports the use of capital-based pricing rather than the traditional cost-based pricing. Cost-based pricing do not provide data on the rate of return on the additional capital employed, therefore, the recommendation to price on the basis of the capital employed. The article illustrates the concept with the use of an example.



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