Académique Documents
Professionnel Documents
Culture Documents
Developing Pricing
Strategies and Programs
Chapter Questions
How do consumers process and evaluate
prices?
How should a company set prices initially for
products or services?
How should a company adapt prices to meet
varying circumstances and opportunities?
When should a company initiate a price
change?
How should a company respond to a
competitors price challenge?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
14-2
Gillette Commands a
Price Premium
14-3
Rent
Tuition
Fee
Fare
Rate
Toll
Premium
Honorarium
Special assessment
Bribe
Dues
Salary
Commission
Wage
Tax
14-4
14-5
Consumer Psychology
and Pricing
Reference Prices
Price-quality inferences
Price endings
Price cues
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
14-6
Fair price
Typical price
Last price paid
Upper-bound price
Lower-bound price
Competitor prices
Expected future
price
Usual discounted
price
14-7
Undervalued Brands
Mercury
Infiniti
Buick
Lincoln
Chrysler
14-8
Tiffanys
Price-Quality Relationship
14-9
Price Cues
14-10
14-11
14-12
14-13
Price Sensitivity
Estimating
Demand Curves
Price Elasticity
of Demand
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
14-14
14-15
14-16
14-17
Fixed costs
Variable costs
Total costs
Average cost
Cost at different
levels of
production
14-18
14-19
14-20
14-21
14-22
Auction-Type Pricing
English auctions
Dutch auctions
Sealed-bid auctions
14-23
14-24
Price-Adaptation Strategies
Geographical Pricing
Discounts/Allowances
Promotional Pricing
Differentiated Pricing
14-25
Price-Adaptation Strategies
Countertrade
Barter
Compensation deal
Buyback
arrangement
Offset
Discounts/ Allowances
Cash discount
Quantity discount
Functional discount
Seasonal discount
Allowance
14-26
Loss-leader pricing
Special-event pricing
Cash rebates
Low-interest financing
Longer payment terms
Warranties and service
contracts
Psychological
discounting
14-27
Differentiated Pricing
Customer-segment
pricing
Product-form pricing
Image pricing
Channel pricing
Location pricing
Time pricing
Yield pricing
14-28
14-29
Increasing Prices
Delayed quotation pricing
Escalator clauses
Unbundling
Reduction of discounts
14-30
Maintain price
Maintain price and add value
Reduce price
Increase price and improve quality
Launch a low-price fighter line
14-31
Marketing Debate
Is the right price a fair price?
Take a position:
1. Prices should reflect the value that
consumers are willing to pay.
or
2. Prices should primarily just reflect the cost
involved in making a product.
14-32
Marketing Discussion
14-33