9 Pricing

Question 1

What are the 4 pricing methods?

Answer 1

Costs

Competition

Customer Value

Dynamic

Question 2

Explain the two types of competitor-orientated pricing.

Answer 2

Going-rate pricing: When no product differentiation is there, producers have to accept the going rate.

Competitive bidding: The supplier chooses the most competitive/lowest price.

Question 3

What are the 6 influences on customer value based pricing?

Answer 3

Price-quality relationships

Costs and negotiating margins

Distribution

Competition

Branding and tactical marketing

Political factors

Question 4

Look at diagram of layers of competition in your gallery

Question 5

Which two steps need to be implicated when pricing a new product?

Answer 5

1. Decide on a target market and its advantages
2. Design modified and different priced versions when multiple segments seem attractive

Question 6

What are expansions of digital products and services?

Answer 6

Flat-rate offer (Pauschalangebot)

Tiered (abgestuft)

Usage based

per added module