1chapter 15 essentials of marketing 4e lamb hair mcdaniel ©2005 south-western/thomson learning...
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1Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 15
Pricing ConceptsPricing Concepts
2Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning ObjectivesLearning Objectives
1. Discuss the importance of pricing decisions to the economy and to the individual firm.
2. List and explain a variety of pricing objectives.
3. Explain the role of demand in price determination.
3Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(continued)
4. Understand the concept of yield management systems.
5. Describe cost-oriented pricing strategies.
6. Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price.
4Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning ObjectivesLearning Objectives
7. Describe the procedure for settingthe right price.
8. Identify the legal and ethical constraints on pricing decisions.
9. Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price.
5Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Discuss the importance of pricing decisions to the economy and to the individual firm.
11
On Linehttp://www.mlb.com
On Linehttp://www.mlb.com
6Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
In the broadest sense, In the broadest sense, price allocates resources price allocates resources in a free-market economyin a free-market economy
In the broadest sense, In the broadest sense, price allocates resources price allocates resources in a free-market economyin a free-market economy
The Importance of PriceThe Importance of Price
To the consumer...To the consumer...Price is the cost Price is the cost
of somethingof something
To the consumer...To the consumer...Price is the cost Price is the cost
of somethingof something
To the seller...To the seller...Price is revenuePrice is revenueand profit sourceand profit source
To the seller...To the seller...Price is revenuePrice is revenueand profit sourceand profit source
11
7Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
What Is Price?What Is Price?
Price is that which is given
up in an exchange to
acquire a good or service.
11
8Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Importance of PriceThe Importance of Priceto Marketing Managersto Marketing Managers
RevenueRevenue
ProfitProfit
The price charged to customers multiplied by the
number of units sold.
The price charged to customers multiplied by the
number of units sold.
Revenue minus expensesRevenue minus expenses
11
9Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Importance of PriceThe Importance of Price11
Revenue = Unit Price Number of units sold
Revenue pays for every activity. What’s left over is Profit.
Marketers must be sure not to set the price to high nor too low, but
at the point the targeted customer thinks is ideal.
10Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Trends Influencing Price Trends Influencing Price SettingSetting
11
Flood of new product introductions
Flood of new product introductions
Increased availability ofbargain-priced private and
generic brands
Increased availability ofbargain-priced private and
generic brands
Price cutting as a strategy tomaintain or regain
market share
Price cutting as a strategy tomaintain or regain
market share
A general decline in consumer confidence after terrorist attacksA general decline in consumer
confidence after terrorist attacks
Trends Trends in thein the
MarketMarket
Trends Trends in thein the
MarketMarket
11Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
List and explain a variety of pricing objectives.
22
12Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Pricing ObjectivesPricing Objectives
Profit-Oriented Pricing ObjectivesProfit-Oriented Pricing ObjectivesProfit-Oriented Pricing ObjectivesProfit-Oriented Pricing Objectives
Sales-Oriented Pricing ObjectivesSales-Oriented Pricing ObjectivesSales-Oriented Pricing ObjectivesSales-Oriented Pricing Objectives
Status Quo Pricing ObjectivesStatus Quo Pricing ObjectivesStatus Quo Pricing ObjectivesStatus Quo Pricing Objectives
22
13Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Profit-Oriented Pricing Profit-Oriented Pricing ObjectivesObjectives
Profit-Oriented Pricing ObjectivesProfit-Oriented Pricing ObjectivesProfit-Oriented Pricing ObjectivesProfit-Oriented Pricing Objectives
ProfitMaximization
ProfitMaximization
SatisfactoryProfits
SatisfactoryProfits
Target Return on
Investment
Target Return on
Investment
22
14Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Profit MaximizationProfit Maximization
Setting prices so that
total revenue is as large
as possible relative
to total costs.
22
15Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Return on InvestmentReturn on Investment
Net profit after taxes
divided by total assets.
ROI = ROI = net profit after taxesnet profit after taxes total assetstotal assets
22
16Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales-Oriented Pricing Sales-Oriented Pricing ObjectivesObjectives
MarketShare
MarketShare
SalesMaximization
SalesMaximization
Sales-Oriented Pricing ObjectivesSales-Oriented Pricing ObjectivesSales-Oriented Pricing ObjectivesSales-Oriented Pricing Objectives
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17Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Market ShareMarket Share
A company’s product sales
as a percentage of total
sales for that industry.
22
18Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Sales MaximizationSales Maximization
Short-term objective to maximize sales
Ignores profits, competition, and the marketing environment
May be used to sell off excess inventory
22
19Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Status Quo Pricing ObjectivesStatus Quo Pricing Objectives
Maintainexistingprices
Maintainexistingprices
Meetcompetition’s
prices
Meetcompetition’s
prices
Status Quo Pricing ObjectivesStatus Quo Pricing ObjectivesStatus Quo Pricing ObjectivesStatus Quo Pricing Objectives
22
20Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Explain the role of demand in price determination.
33
21Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Demand and SupplyDemand and Supply
DemandDemand
SupplySupply
The quantity of a product that will be sold in the market at various
prices for a specified period.
The quantity of a product that will be sold in the market at various
prices for a specified period.
The quantity of a productthat will be offered to the marketby a supplier at various prices
for a specific period.
The quantity of a productthat will be offered to the marketby a supplier at various prices
for a specific period.
33
22Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Elasticity of DemandElasticity of Demand
Consumers’ responsiveness or
sensitivity to changes
in price.
33
23Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Elasticity of DemandElasticity of Demand
Elastic Elastic Demand Demand Elastic Elastic
Demand Demand
Consumers buy more or lessof a product when the price changes
InelasticInelasticDemandDemandInelasticInelasticDemandDemand
An increase or decrease in price will not significantly affect demand
33
24Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Elasticity of DemandElasticity of Demand
Price Goes...Price Goes...Price Goes...Price Goes... Revenue Goes...Revenue Goes...Revenue Goes...Revenue Goes... Demand is...Demand is...
Down Up Elastic
Down Down Inelastic
Up Up Inelastic
Up Down Elastic
33
25Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Factors that Affect Factors that Affect Elasticity of DemandElasticity of Demand
Availability of SubstitutesAvailability of Substitutes
Price relative topurchasing power
Price relative topurchasing power
Product durabilityProduct durability
A product’s other usesA product’s other uses
33
On Linehttp://www.ubid.com
On Linehttp://www.ubid.com
26Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Understand the concept of yield management systems.
44
27Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Yield Management SystemsYield Management Systems
A technique for adjusting
prices that uses complex
mathematical software
to profitably fill
unused capacity.
44
28Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Yield Management SystemsYield Management SystemsPrice AdjustmentsPrice Adjustments
Discounting early purchases
Discounting early purchases
Limiting early sales atdiscounted prices
Limiting early sales atdiscounted prices
Overbooking capacityOverbooking capacity
44
29Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe cost-oriented pricing strategies.
55
30Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Cost Determinant of PriceThe Cost Determinant of Price55
Deviate with changes in level of output
Deviate with changes in level of output
Types of CostsTypes of CostsTypes of CostsTypes of Costs
VariableVariableCostsCosts
VariableVariableCostsCosts Fixed CostsFixed CostsFixed CostsFixed Costs
Do not deviate as level of output changes
Do not deviate as level of output changes
31Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Cost Determinant of PriceThe Cost Determinant of Price
Target-ReturnPricing
Target-ReturnPricing
Break-EvenPricing
Break-EvenPricing
Profit Maximization Pricing
Profit Maximization Pricing
MethodsMethodsUsed toUsed to
Set PricesSet Prices
MethodsMethodsUsed toUsed to
Set PricesSet Prices
55
Markup pricing
32Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Markup PricingMarkup Pricing
Markup Pricing
Markup Pricing
The cost of buying the product from the producer plus amounts for
profit and for expenses not otherwise accounted for.
The cost of buying the product from the producer plus amounts for
profit and for expenses not otherwise accounted for.
55
33Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Break-Even PricingBreak-Even Pricing
QuantityQuantity
Pri
ceP
rice
2,0002,000
00 1,0001,000 2,0002,000 3,0003,000 4,0004,000 5,0005,000 6,0006,000
4,0004,000
Fixed costsFixed costs
LossLoss
ProfitProfitTotal RevenueTotal Revenue
Total CostsTotal CostsBreak-even pointBreak-even point
55
34Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Demonstrate how the product life cycle, competition, distribution and promotion strategies, customer demands, the Internet and extranets, and perceptions of quality can affect price.
66
35Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Other Determinants of PriceOther Determinants of Price
Perceived QualityPerceived Quality
Promotion StrategyPromotion Strategy
Distribution StrategyDistribution Strategy
CompetitionCompetition
Stages of theProduct Life Cycle
Stages of theProduct Life Cycle
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36Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
On Linehttp://www.fragrancenet.com
On Linehttp://www.fragrancenet.com
Stages in the Stages in the Product Life CycleProduct Life Cycle
IntroductoryIntroductoryStageStage
GrowthGrowthStageStage
DeclineDeclineStageStage
$$
HighHigh$$
StableStable$$
DecreaseDecrease
MaturityMaturityStageStage
$$DecreaseDecrease
StableStable
HighHigh
66
37Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Distribution StrategyDistribution Strategy
Offer a larger profit margin
Offer a larger profit margin
Convincing distributorsConvincing distributorsto carry productto carry product
Convincing distributorsConvincing distributorsto carry productto carry product
Give dealers a largetrade allowance
Give dealers a largetrade allowance
66
38Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
On Linehttp://www.botspot.com
On Linehttp://www.botspot.com
The Impact of the InternetThe Impact of the Internet
Buyers can compare products and prices
Sellers can collect detailed customer data
Online merchants can compare other merchant’s prices and adjust their own easily
Bargaining power is created between buyers and sellers
66
39Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
ExtranetExtranet
A private electronic network
that links a company
with its suppliers
and customers.
66
40Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Prestige PricingPrestige Pricing
Charging a high price to
help promote a high-quality
image.
66On Linehttp://www.debeers.comhttp://www.rolex.com
On Linehttp://www.debeers.comhttp://www.rolex.com
41Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Dimensions of QualityDimensions of Quality66
VersatilityVersatility
DurabilityDurability
ServiceabilityServiceability
Ease of UseEase of Use
PerformancePerformance
PrestigePrestige
42Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Describe the procedure for setting the right price.
77
43Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Steps in Setting the Right Steps in Setting the Right PricePrice
Fine tune with pricing tacticsFine tune with pricing tactics
Choose a price strategyChoose a price strategy
Estimate demand, costs, and profitsEstimate demand, costs, and profits
Establish pricing goalsEstablish pricing goals
77
Results lead to the right price
44Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Price StrategyPrice Strategy
A basic, long-term pricing
framework, which
establishes the initial price
for a product and the
intended direction for
price movements over the
product life cycle.
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45Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Choosing a Price StrategyChoosing a Price Strategy
Basic StrategiesBasic Strategiesforfor
Setting PricesSetting Prices
Basic StrategiesBasic Strategiesforfor
Setting PricesSetting Prices
Status Quo Pricing Status Quo Pricing
Price SkimmingPrice Skimming
Penetration PricingPenetration Pricing
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46Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Price SkimmingPrice Skimming
Situations Situations When Price When Price Skimming Skimming
Is Is SuccessfulSuccessful
Situations Situations When Price When Price Skimming Skimming
Is Is SuccessfulSuccessful
Unique Advantages/Superior
Legal Protection of Product
Blocked Entry to Competitors
Technological Breakthrough
Inelastic Demand
77
47Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Penetration PricingPenetration Pricing
A pricing policy whereby
a firm charges a relatively
low price for a product
initially as a way to
reach the mass market.
77
48Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Penetration PricingPenetration Pricing
AdvantagesAdvantagesAdvantagesAdvantages
Discourages or blocks competition from market entry
Boosts sales and provides large profit increases.
77
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Requires gear up for mass production
Selling large volumes at low prices
Strategy to gain market share may fail
49Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Status Quo PricingStatus Quo Pricing
AdvantagesAdvantagesAdvantagesAdvantages
Simplicity
Safest route to long-term survival for small firms
DisadvantagesDisadvantagesDisadvantagesDisadvantages
Strategy may ignore demand and/or cost
77
50Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify the legal and ethical constraints on pricing decisions.
88
51Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
The Legality and Ethics ofThe Legality and Ethics ofPrice StrategyPrice Strategy
Issues Issues That LimitThat LimitPricing Pricing DecisionsDecisions
Issues Issues That LimitThat LimitPricing Pricing DecisionsDecisions
Unfair Trade PracticesUnfair Trade Practices
Price FixingPrice Fixing
Price DiscriminationPrice Discrimination
Predatory PricingPredatory Pricing
88
52Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Unfair Trade Practice ActsUnfair Trade Practice Acts
Laws that prohibit
wholesalers and retailers
from selling below cost.
88
53Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Price FixingPrice Fixing
An agreement between two
or more firms on the
price they will charge
for a product.
88On Linehttp://www.altavista.comhttp://www.yahoo.com
On Linehttp://www.altavista.comhttp://www.yahoo.com
54Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Price DiscriminationPrice Discrimination
The Robinson-Patman Act of 1936:
Prohibits any firm from selling to two or more different buyers at different prices if the result would lessen competition
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55Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Robinson-Patman Act Robinson-Patman Act DefensesDefenses
Seller Defenses Seller Defenses Seller Defenses Seller Defenses
CostCost MarketConditions
MarketConditions CompetitionCompetition
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56Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Predatory PricingPredatory Pricing
The practice of charging a
very low price for a product
with the intent of driving
competitors out of business
or out of a market.
88
57Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Learning Objective Learning Objective
Explain how discounts, geographic pricing, and other special pricing tactics can be used to fine-tune the base price.
99
58Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Tactics for Fine-Tuning Tactics for Fine-Tuning the Base Pricethe Base Price
Special Pricing Tactics Special Pricing Tactics
DiscountsDiscounts
Geographic PricingGeographic Pricing
99
59Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Tactics for Fine-Tuning Tactics for Fine-Tuning the Base Pricethe Base Price
Quantity DiscountsQuantity Discounts
Cash DiscountsCash Discounts
Functional DiscountsFunctional Discounts
Seasonal DiscountsSeasonal Discounts
99
Promotional AllowancesPromotional Allowances
RebatesRebates
Value-Based PricingValue-Based Pricing
Zero Percent FinancingZero Percent Financing
60Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Value-Based PricingValue-Based Pricing
The price is set at a level
that seems to the customer
to be a good price
compared to the prices of
other options.
99
61Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Geographic PricingGeographic Pricing
Basing-Point Pricing
Basing-Point Pricing
Freight AbsorptionPricing
Freight AbsorptionPricing
Zone PricingZone Pricing
Uniform Delivered Pricing
Uniform Delivered Pricing
FOB Origin PricingFOB Origin Pricing
Common Common Methods ofMethods ofGeographicGeographic
PricingPricing
Common Common Methods ofMethods ofGeographicGeographic
PricingPricing
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62Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Geographic PricingGeographic Pricing
FOB OriginPricing
FOB OriginPricing
The buyer absorbs the freight costs from the shipping point
(“free on board”).
The buyer absorbs the freight costs from the shipping point
(“free on board”).
UniformDelivered
Pricing
UniformDelivered
Pricing
The seller pays the freight charges and bills the purchaser an
identical, flat freight charge.
The seller pays the freight charges and bills the purchaser an
identical, flat freight charge.
99
63Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
On Linehttp://www.ups.com
On Linehttp://www.ups.com
Geographic PricingGeographic Pricing
Zone PricingZone Pricing
FreightAbsorption
Pricing
FreightAbsorption
Pricing
Basing-PointPricing
Basing-PointPricing
The U.S. is divided into zones and a flat freight rate is charged to
customers in a given zone.
The U.S. is divided into zones and a flat freight rate is charged to
customers in a given zone.
The seller pays for all or part of the freight charges and does not
pass them on to the buyer.
The seller pays for all or part of the freight charges and does not
pass them on to the buyer.
The seller designates a location as a basing point and charges all
buyers the freight costs from that point.
The seller designates a location as a basing point and charges all
buyers the freight costs from that point.
99
64Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Special Pricing TacticsSpecial Pricing Tactics
Single-Price Tactic Single-Price Tactic
Flexible PricingFlexible Pricing
Professional Services PricingProfessional Services Pricing
Price LiningPrice Lining
Leader PricingLeader Pricing
Bait PricingBait Pricing
Odd-Even PricingOdd-Even Pricing
Price Bundling Price Bundling
Two-Part PricingTwo-Part Pricing
All goods offered at the same price All goods offered at the same price
Different customers pay different priceDifferent customers pay different price
Used by professionals with experience,training or certificationUsed by professionals with experience,training or certification
Several line items at specific price pointsSeveral line items at specific price points
Sell product at near or below costSell product at near or below cost
Lure customers through false or misleading price advertisingLure customers through false or misleading price advertisingOdd-number prices imply bargainEven-number prices imply qualityOdd-number prices imply bargainEven-number prices imply qualityCombining two or more products in a single package Combining two or more products in a single package
Two separate charges to consume a single goodTwo separate charges to consume a single good
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65Chapter 15 Essentials of Marketing 4e Lamb Hair McDaniel©2005 South-Western/Thomson Learning
Consumer PenaltiesConsumer Penalties
An irrevocable loss of revenue
is suffered
An irrevocable loss of revenue
is suffered
Additional transaction costs
are incurred
Additional transaction costs
are incurred
Businesses Impose Businesses Impose Consumer Penalties If...Consumer Penalties If...
Businesses Impose Businesses Impose Consumer Penalties If...Consumer Penalties If...
99On Linehttp://www.princesscruises.comhttp://www.carnival.com
On Linehttp://www.princesscruises.comhttp://www.carnival.com