Académique Documents
Professionnel Documents
Culture Documents
Developing Pricing
Strategies and Programs
Marketing Management
A South Asian Perspective, 13th ed
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
competitor’s price challenge?
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. 14-2
Gillette Commands a
Price Premium
Reference Prices
Price-quality inferences
Price endings
Price cues
• Customers purchase
item infrequently
• Customers are new
• Product designs
vary over time
• Prices vary
seasonally
• Quality or sizes vary
across stores
Determine demand
Estimate costs
• Survival
• Maximum current
profit
• Maximum market
share
• Maximum market
skimming
• Product-quality
leadership
Price Sensitivity
Estimating
Demand Curves
Price Elasticity
of Demand
Types of Costs
Accumulated
Production
Activity-Based
Cost Accounting
Target Costing
English auctions
Dutch auctions
Sealed-bid auctions
Geographical Pricing
Discounts/Allowances
Promotional Pricing
Differentiated Pricing
• Customer-segment
pricing
• Product-form pricing
• Image pricing
• Channel pricing
• Location pricing
• Time pricing
• Yield pricing
Escalator clauses
Unbundling
Reduction of discounts
• Maintain price
• Maintain price and add value
• Reduce price
• Increase price and improve quality
• Launch a low-price fighter line