THE PRICE PRICE is the money, good, or service exchanged for the ownership or use of a good or service.

. PRICING DEFINED Pricing may be defined as those involved in the determination of the price at which products that will be offered for sale considering the various objectives of the firm. PRICING OBJECTIVES 1. Profit-oriented objectives 2. Sales-oriented objectives; or 3. Status quo oriented objectives THE PRICING PROCEDURE refers to the series of steps adapted in the determination of price. 1. The determination of the realistic range of choice; 2. The selection of the pricing strategy; 3. The evaluation of economic feasibility; and 4. The setting of the price. PRICING APPROACHES 1. Cost Based Approach refers to the setting of prices on the basis of costs Types: a. Cost Plus pricing Formula: Price = direct costs + overhead costs + profit margin Where direct costs = materials + labor Overhead costs = a share of fixed indirect costs; Profit margin = a fair amount of return b. Target Rate of Return Pricing Formula: P = DVC+F/X+RK/X Where P = selling price using the target rate of return method; DVC= direct unit variable costs; F= fixed costs; X = standard unit volume; R=Rate of return desired; and K=Capital (total operating assets) employed. 2. Buyer Based Approach deals with consumer perceptions or behavior as bases for determining the selling price of a product or service. Methods: a. Perceived value pricing b. Price-quality relationship sharing c. Loss-leader pricing d. Odd-numbered pricing e. Price lining pricing 3. Competition Based Approach refers to the setting of prices based on what prices are being charged by competitors. 2 kinds: a. Going-rate pricing; and

b. Sealed bid pricing PRICE ADAPTION STRATEGIES 1. Geographical pricing refers to the pricing decisions related to products intended for customers in different locations. a. Point-of-production pricing b. Uniform delivered pricing c. Zone-delivered pricing d. Freight-absorption pricing 2. Price Discount and Allowances Discounts are reductions from the list price that are given by sellers to buyers who either give up some marketing function or provide the function themselves. Allowances are reductions in price given to final consumers, costumers or channel members for doing some tasks or accepting less service. Discounts and allowances are classified as follows: a. Cash discounts b. Quantity discounts c. Functional or Trade discounts d. Seasonal discounts e. Allowances 3. Promotional pricing refers to the temporary reduction of prices of a companys products. a. Sale b. Special event pricing c. Cash rebates d. Low-interest financing e. Warranties and service contracts. 4. Discriminatory pricing refers to modifications of the basic price to accommodate differences in costumes, products and locations. Forms of discriminatory pricing a. Customer segment pricing b. Product form pricing c. Image pricing d. Location pricing e. Time pricing PRICING UNDER VARIOUS MARKET CONDITIONS Kinds of Competitive Situations 1. Pure Monopoly there is only one seller in a market 2. Oligopoly only a few firms compete in the sale of a commodity. 3. Pure competition refers to that market where there are a great number of sellers and buyers 4. Oligopsony only a few buyers compete in the purchase of a commodity. 5. Monopsony is a competitive situation characterized by the presence of only one buyer.

Retailing refers to the business activity of selling goods or services to the final consumer. Retailer one whose business firm sells mainly to the final consumer. Functions of Retailers 1. They provide convenience; 2. They provide guarantee and service; 3. They provide financing of transactions; 4. 4. They perform promotional activities; 5. They perform storage function; 6. They perform intelligence service for the manufacturer; and 7. They serve as buying agent of the consumers. Types of Retailers A. Sales Volume According to sales volume, retail stores may be classified as: Small Medium Large B. Product Mix Offered May be categorized into: General merchandise stores Specialty stores C. Form of ownership Corporate chain stores Independent stores Franchise stores D. Method of Operation Full service retailers Supermarket Discount stores Non store retails WHOLESALING Wholesaling refers to all activities involved in selling goods and services to those who intend to resell or use the same for producing goods or services. The following transactions are considered wholesale: 1. The sale of a computer unit for office use; 2. The sale of sugar as raw material for candles; 3. The sale of an electric guitar to a professional guitarist; 4. The sale of janitorial services to an office 5. The sale of a bus to a transportation company; 6. The sale of books to a university; and 7. The sale of vegetables to a retailer. Functions of the Wholesaler 1. Anticipating customer need customers tend to buy products or services only when they are immediately needed. 2. Selling and promotion the manufacturer, often saddled by the need to improve his production activities, is actually aided by the wholesaler in selling and promoting his products.

3. Financing wholesalers, most often, provide financing services to their customers. 4. Storage wholesalers perform storage function when the manufacturer or the retailer is not in a position to accept such responsibility. 5. Breaking Bulk the manufacturer cannot afford to ship goods to retailers in small quantities, as they are often needed. 6. Transportation The wholesaler is usually located in an area near his customers. 7. Risk taking the wholesaler assumes the risk of not disposing the goods he bought from the manufacturer. Types of Wholesaler 1. Full function wholesalers a. Merchant wholesalers; b. 2. Sales offices and branches c. Agents d. Brokers and commission houses 2. Merchant wholesalers are independently-owned establishments which take title to the merchandise they carry. 3. Sales Offices and Branches are manufacturer owned and controlled wholesale outlets. 4. Agents act as representatives of manufacturers in the selling process. 5. Brokers are neutral middlemen until he is called to serve either the seller or the buyer. 6. Commission house or merchant take physical possession of merchandise but not the title. 7. Limited Function wholesalers a. Drop shippers b. Truck distributors c. Mail-order wholesalers d. Cash-and-carry wholesalers e. Cooperatives f. Rack jobbers 8. Industrial Wholesalers served by wholesalers, some of which aslso serve the retailers. Types of wholesalers serve the industrial market: 1. Those also serving the retailers a. Sales branches b. Brokers c. Manufacturers agents d. Combination houses 2. Industrial distributors serving only the industrial market a. General line wholesalers b. Specialty line wholesalers

NATURE AND MEANING OF DEVIANT BEHAVIOR Deviance is any behavior that the members of a social group define as violating the established social norms. THEORIES OF DEVIANT BEHAVIOR 1. SOCIAL PATHOLOGY Causes: Deviant behavior is caused by people with actual physical and mental illness, malfunctions opr deformities. Solutions: Education, Re-education, Hospitalization, Rehabilitation, Imprisonment, Capital punishment. 2. BIOLOGICAL THEORY Causes: Deviant behavior is a result of aberrant genetic traits in such cases as mental illness, criminality and homosexuality. Solution: : Education, Re-education, Hospitalization, Rehabilitation, Imprisonment, Capital punishment and behavior modification. 3. PSYCHOLOGICAL THEORY Causes: Deviant behavior is brought about by deviant impulses toward sexuality and aggression. Solutions: Psychiatry, psychological counseling, hospitalization and rehabilitation; shock therapy 4. SOCIAL DISORGANIZATION THEORY Causes: Deviant behavior is caused by the breakdown of the norms, laws, mores, and other important values of the people. Solutions: Modification or rehabilitation in the part of the system which suffers from disorganization. 5. LABELING THEORY Causes: Societys labeling on certain behaviors as deviant causes deviant behavior. Solutions: Relabeling and relabeling certain people as criminals, prostitutes, homosexuals, schizophrenic, etc. once considered as deviant. 6. ANOMIE THEORY OR STRUCTURAL STRESS THEORY Causes: The social structure plays a significant influence in the sense that it prompts people to engage in deviant behavior. Solutions: Giving access to approved goals; equal opportunity for all. 7. VALUE CONFLICT THEORY Causes: Conflicting values, vested interests, and scarce resources between conflicting individuals or groups cause deviant behavior. Examples: capitalists vs. workers; AFP vs. NPA; Christians vs. Muslims; political party vs. another.

Solutions: Equating or balancing the power between conflicting individuals or groups through collective bargaining (CBA); peace negotiations, truce ceasefire and sharing of power. 8. CONFLICT THEORY Causes: Deviant behavior is caused by an unjust social structure, a partisan social order where there is unequal distribution of wealth, power and prestige in the society. Solutions: The moderates propose more reforms in the various social institutions; the radicals advocate a sweeping transformation or a revolutionary approach, an overhaul of the existing unjust social structure. 9. CULTURAL TRANSMISSIONS OR DIFFIRENTIAL ASSOICATION THEORY Causes: Deviance is created through the socialization or transmission of norms within a community or group. Solutions: Education, re-education, role models of successful people hospitalization, rehabilitation, imprisonment, fines, censures, capital punishment.