SkeletonSlide19_2010Fall_MGMT324

SkeletonSlide19_2010Fall_MGMT324 - MGMT 324 Marketing...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
MGMT 324 Marketing Management Sangwoo Shin Fall 2010 Nov 10, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Topics for Today Understanding 4 P s P roduct P rice P romotion P lace ± 3C based pricing ± Price discrimination ² Direct price discrimination ² Semi-direct price discrimination ² Indirect price discrimination
Background image of page 2
P rice Discrimination Definition Motivation Selling a product at two or more different prices Perceived benefit of products varies across consumers and across time Conditions Segmentation must be possible Each segment has different intensities of demand (or different benefits) No reselling No resentment Revenue from segmentation > Costs from segmentation Legal
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Why P rice Discriminate? Never be satisfied with a single price Pricing too low to some segments leaves money on the table Pricing too high to some segments leads to missed revenue opportunity P single Q single Graphical illustration D P Q Demand : # of consumers who are willing to pay at least P for the product
Background image of page 4
Why P rice Discriminate? Two prices (High, Low) vs. single price P single Q single D P Q P High P Low Q High Q Low Why not more than two prices? D P Q P 2 P 1 P 3 P 4 P 5 Q 1 Q 2 Q 3 Q 4 Q 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Direct P rice Discrimination Personalized price offering Individual-specific offers Negotiation Auctions Characteristics
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 16

SkeletonSlide19_2010Fall_MGMT324 - MGMT 324 Marketing...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online