S e ll to c ompe titors ca n not compe u nde rs e ll

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Unformatted text preview: me nta ble • Lowe r price d Lowe s e gme nts a re not a ble to re s e ll to • C ompe titors ca n not Compe u nde rs e ll s e gme nts cha rging highe r price s c ha • P ricing mus t be le ga l • C os ts of s e gme nta tion ca n Cos not e xce e d re ve nue s e a rne d n ot • S e gme nte d pricing mus t re fle ct re a l diffe re nce s in cus tome rs ’ pe rce ive d va lue c us Price Adjustment Strategies S trate g ie s • • • • • • Dis count / allowance S e gm e nte d Ps ychological Prom otional Ge ographical Inte rnational • The price is us e d to s a y The s ome thing a bout the product. p roduct. P rice -qua lity re la tions hip Re fe re nce price s Diffe re nce s a s s ma ll a s Diffe five ce nts ca n be importa nt importa Nume ric digits ma y ha ve Nume s ymbolic a nd vis ua l q ua litie s tha t p s ychologica lly influe nce the buye r the Price Adjustment Strategies S trate g ie s • • • • • • Dis count / allowance S e gm e nte d Ps ychological Prom otional Ge ographical Inte rnational • Te mpora rily pricing Te p roducts be low the lis t price or e ve n be low cos t p rice • Los s le a de rs S pe cia l-e ve nt pricing Ca s h re ba te s Low-inte re s t fina ncing, Low-inte longe r wa rra ntie s , fre e ma inte na nce ma • P romotiona l pricing ca n ha ve a dve rs e e ffe cts ha Price Adjustment Strategies Pro mo tio nal Pric ing Pro ble ms P ro • E a s ily copie d by Ea compe titors c ompe • C re a te s de a l-prone Cre cons ume rs c ons • Ma y e rode bra nd’s Ma va lue va • Not a le gitima te s ubs titute Not for e ffe ctive s tra te gic pla nning p la • F re que nt us e le a ds to Fre indus try pri...
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