1chapter 15 essentials of marketing 4e lamb hair mcdaniel ©2005 south-western/thomson learning...

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

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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

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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

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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.

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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

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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.

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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

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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.

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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.

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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

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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

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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.

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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

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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.

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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

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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

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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

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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

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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

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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.

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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.

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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

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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.

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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