Pricing Strategies and Methods

Based on your experience or readings, discuss the different types of pricing strategies and methodologies confronted by Purchasing and Supply Management professionals in the acquisition of goods and services - in particular cost- and market-based pricing, value-based pricing, penetration and predatory pricing, life cycle pricing, and segmented pricing. Differentiate between customer-driven and competition-driven pricing and their affect on the buying organization's willingness and ability to purchase a particular good or service. What is the role of Purchasing and Supply Management professionals as "gatekeepers" who control the flow of information and external contacts with suppliers? Are these professionals considered decision makers with respect to product and supplier selection as well as price acceptance? NOTE: Your response should include comments and/or observations relative to each of the items associated with this week's discussion topic. You can divide your response into paragraphs - one each for each item. Moreover, your initial response should address each of these items. Subsequent responses can constitute a commentary on your classmates' comments/observations on any one or all items. Although no specific length or size of each item is required, your response to each item should focus on the salient points or key aspects corresponding to the nature of each item. Activity: Review outside and supplemental readings.