Pricing practices

Pricing practices

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 7: Product Pricing Theories and Practices

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of pricing practices.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Price discrimination
• Cost-plus pricing
• Incremental-cost pricing
• Administered pricing
• Export pricing
• Predatory pricing
• Skimming pricing
• Penetration pricing

Detailed Microsyllabus

1. Cost- and decision-based pricing

   1. Cost-plus pricing and the choice of a markup.
   2. Incremental pricing based on additional revenue and cost.
   3. Administered pricing and managerial price setting.

2. Market-oriented pricing

   1. Price discrimination and its required market conditions.
   2. Export and predatory pricing as economic concepts.
   3. Skimming and penetration strategies and their contrasting objectives.

---

Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.