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Unformatted text preview: Marketing 649 Marketing Management 10/13/2011 Chapter 12 Developing Pricing Strategies and Programs Synonyms for Price Rent Tuition Fee Fare Rate Toll Premium Honorarium Speaking at graduations Special assessment Bribe Dues Salary Commission Wage Tax The Internet Changes the Pricing Environment: By Providing Information Pricing Headaches Focusing on costs and striving for the industrys traditional margins Not revising price often enough to capitalize on market changes Setting price independently rather than as an intruistic element of market- positioning strategy Not varying price enough for different products, segments, channels and purchase occasions Possible Consumer Reference Prices Fair price Typical price Last price paid Upper-bound price Lower-bound price Competitors prices Expected future price Usual discounted price Value is determined by the customer Price Cues Left to right Pricing ($299 vs. $300) Odd number discount perceptions (use of 9) Even number value perceptions ($39 vs. $44) When to Use Price Cuts Customers purchase item infrequently...
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This note was uploaded on 01/31/2012 for the course MKGT 649 taught by Professor Staff during the Fall '11 term at S.F. State.
- Fall '11