Module 3 Lesson 1-3 Flashcards
The practice of charging different customer’s different prices for the same item is
known as
Price segmentation.
is an approach in products and services pricing which defines
various prices, discounts, offers consistent with the organization goals and strategy.
A pricing structure
the pattern of an organization’s prices is known as its
price structure.
Involves your whole approach to pricing across your company but with a specific
emphasis on how your pricing relates to the features of your product being made available
and how it affects customer use of your product.
Pricing Structure
Less concerned with your customers than it is with the competitiveness of your
product in the market. Even with original products that have value, you will almost
certainly have competition in the market.
Pricing Strategy
In this type of pricing structure, a company sets a single price, and that’s it.
Regardless of the individual needs of customer types, your product will be sold at the
same rate to anyone who wishes to subscribe
Singular/Flat-rate Pricing
involves giving a prospective buyer multiple subscription options,
distinguishing them by the features included.
Tiered Pricing
is on offer if part of a company’s selling line involves words to the
effect of “Contact us for more information on pricing.” A company working from a
variable pricing model seeks to negotiate a specific price for each customer who needs
their services.
Variable Pricing
A company employing this hybrid pricing structure uses tiering as a basis for
pricing with ‘regular’-sized customers. The benefits of tiered pricing are retained.
Meanwhile, the addition of a variable option gives the business room to negotiate rates
and cut customized deals with customers who fall outside of their usual range.
Tiered and Variable
is a simple, highly popular pricing structure that is extremely wellliked among SaaS subscribers. In per-user pricing, a single user pays a fixed monthly
price. They may then add another user to their plan, and the baseline price increases (it
might double, for instance); a third user increases the price by the same token, and so
on.
Per-user Pricing
This pay-as-you-go type model relates the cost of a product to its usage.
Usage-Based Pricing
is a versatile pricing structure: restrictions can be made on the basis of
feature or capacity and use case. Plus, there are seven different types of freemium
structures.
Freemium
a high-value and very innovative product, catering to a broad array of
buyer personas, or playing to a narrow field, adapt your pricing structure accordingly
Hawking
the purchase of one product increases the likelihood of
purchasing another product, and vice versa:
Complementary products:
Any product sold in conjunction with another product can be examined as an addon pricing structure - Complementary Goods
Add-ons
Each product provides benefits independently
The purchase of one product increases the likelihood of the purchase of any
other complementary product
Independent Complements
The base product defines the product category
Complementary products enhance the benefits of the base product, yet
provide few benefits without the base product, and are not easily
transferable for use with other base products
Tied Complements
is a method in which one of the products
is priced to maximize the sales volume and which in turn stimulates the demand
of other product.
Complementary Product pricing
Often when consumers purchase a product they want to enhance the
value of that product by buying the accessories or complementary products
that facilitate it. This will provoke them to use the product and its
accessories more often and stay loyal to the brand.
Captive pricing
This pricing strategy is effective by dividing the price into two parts,
the fixed price which provides you with the bare minimum service as well as
other, add-on fees that consumers can chose to accept if they want added
features or services. This pricing strategy relates only to services.
Two-part pricing
This pricing strategy aims at reducing prices to make your company’s
product more desirable to consumers and to gain market share. Within retail
outlets, this reduction in price must be significant enough to cover
transaction costs of switching from the consumer’s regular store, to a new
location. This pricing strategy can be dangerous because it often signifies
to the consumer that the product is of low quality.
Loss leadership
