Chapter 9 Flashcards
Factor of affecting price decisions
Value-bases price
Cost-bases price
Value base price
Base on customer value to set the price
Good value pricing-The quality of the goods or service
Value added Pricing-Additional features and service
Cost value pricing
Price set based on the cost for producing product
Other consideration in factors affecting price decision
Internal (Market strategy, Objective and mix 4P)
External (The market and demand)
The market and demand (pure company)
Many seller
Usual product example copper
No barriers to entry
Can’t control price
The market and demand (monopolistic)
Many seller
Product example Coca-Cola
No barrier to entry
Control price
The market and demand (oligopolistic)
Few seller
Product example aeroplane
Yes, there is barrier to entry high course or technology
Can control price
The market and demand (monopoly)
Only one seller
Product example Astro
Yes, they are government control to entry in barriers
Can control price
New product pricing strategy
Market skimming pricing
Market penetration pricing
Market skimming pricing
Ping from high to low overtime
Competitor cannot enter easily
Product high-quality and image
Example product Apple
Market penetration pricing
Pricing from low to high overtime
Market must be sensitive
when there is lower price sales increase
Low price can keep out competitor to maintain low price
Product mix pricing strategy
Product line
Optional product
Captive product
By product
Product bundle
Product line
There is a price range between the product
Optional product
Accessory been given when buying a product
Captive product
Product must be used together
By product
The left over material that create the product have been second sold
Product bundle
Product been sold together
Price adjustment strategy
Pricing strategy
Segmented
Pricing strategy
Discount and allowance
Example:
Cash discount when customer pay the bill early
Treat in allowance Price reduce when turning in and old item
Customer segment pricing
Price set by different kind of people example adults and kids
Product from pricing
Price set buy different version and different country
Location pricing
Price set by Different location, example KL and seremban
Time pricing
Price set by the time example parking fee
Psychology pricing
Price is been set by giving the higher the price the more high-quality it is
Promotional pricing
Price can be temporary reduce in short run sales
Geographical pricing
Price based on different zone
Dynamic pricing
Adjust price based on Situation
International pricing
Price is been set by international market
