Marketing Ch14 part3

Marketing Ch14 part3 - do not reflect a proportional...

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Discounting can be a useful tool if a company can gain concessions in return. Higher levels of management should conduct a net price analysis is to arrive at the “real price” of the offering. Loss-lender pricing: Supermarkets and department stores often drop the price on well-known brands to stimulate additional store traffic. Special event pricing: Sellers will establish special prices in certain seasons to draw in more customers. Cash rebates: Auto companies and other consumer-goods companies offer cash rebates to encourage purchase of the manufacturers’ products within a specified time period. Low-interest financing: Instead of cutting it price. Longer payment terms: Sellers stretch loans over longer periods (lower monthly payments). Warranties and service contracts Psychological discounting Companies often adjust their basic price to accommodate differences in customers, products, locations, and so on. Price discrimination occurs when a company sells a product or service at two or more prices that
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Unformatted text preview: do not reflect a proportional difference in costs. • First-degree price discrimination: the seller charges a separate price to each customer depending on the intensity of his or her demand. • Second-degree price discrimination, the seller charges less to buyers who buy a larger volume. • Third-degree price discrimination, the seller charges different amounts to different classes of buyers. • Customer-segment pricing: Different customer groups pa different prices for the same product or service. • Product-form pricing: Different versions of the product are priced differently, but not proportionately to their costs. • Image pricing: Price the same product at two different levels based on image differences. • Channel pricing • Location pricing • Time pricing • Yield pricing offers discounted but limited early purchases, higher-priced late purchases, and the lowest rates on unsold inventory just before it expires....
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Marketing Ch14 part3 - do not reflect a proportional...

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