Session 8: Capturing Value II Flashcards
1
Q
Penetration vs Skimming
A
Penetration is charging low prices to gain share
Vs
Skimming is charging high prices at the expense of volume
2
Q
Price fences
A
Preserve market segmentation between segments with different prices
3
Q
What are price fencing techniques
A
Timing of purchase
Location
Willingness to haggle
Type of buyer
4
Q
Compromise effect
A
Pick middle of three prices options
5
Q
Number 9 pricing
A
Anchor to first digit (3.99 vs 4
6
Q
Directional vs no directional bundling
A
People prefer directional binding (basic, more, All) vs nondirectional (base, base + a, base + b)
7
Q
Metering aversion
A
People don’t like paying for consumption
8
Q
Promotional pricing give some examples
A
Coupons, price matching (search), temporary price cut, buy 1 get 1, rebates
