 Pricing approach

 Price customisation
 Setting the price
 How much do you charge for one unit of the product?
 How do you decide this price?
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Value pricing thermometer
 Control the availability of prices
 selectively presenting an offer to a particular group of
customers but not to others.
 e.g. ola controls the availability of prices by
 price sensitivity of the custoemer( by analysing purchase
history)
 by location (within the city, outstation, within the city tourist
packages)
 couponing, availability of the product

 Set the price based on buyer characteristics,

 such as age, gender, location, or affiliation,
 e.g. railways – senior citizen concession

 Set the price based on transaction characteristics

 Such as quantity purchased, time of purchase, or
method of payment
 Timing of purchase ( buying an air cooler during
summer vs. During winter) and
 the quantity purchased

 Manage the product-line offering

 The offered assortment provides increasing
functionality at an increasing price, sometimes called
a good/better/best strategy
 E.g. Surf excel, rin, sunlight, wheel
 Judge the qualitative indicators
 Low differentiation of alternatives
 Easy comparability
 Will perform as expected
 Reference prices exist
 Not needed as quality cue Managers asset price
 Sophisticated, deliberative buyers sensitivity

 Bearing costs
 Able to switch easily
 Not motivated by prestige
 What is the likelihood that you would
buy this product at a price of Rs X.00/-?
 •At what price would you definitely buy
this product?
 •How much would you be willing to pay
for this product? Quantitative Market
Research
 •How much of this product would you
buy at a price of Rs Y.00/-?
 •At which price difference would you
switch from product A to product B?

 Demand curve
 Plots the cumulative aggregate demand
for a firm’s product across all consumers
at a wide range of price points
 Slope of the demand curve = ( change
in price/change in demand)
Explore how price
 Price Elasticity of Demand influences demand

 (% change in quantity demanded / %

change in price)
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Analyse the economic
impact for the firm
Profit – Unit Marging-
Breakeven Analysis