Notes 4-1-13 - Arriving at the Final Price Skimming Pricing reduce price as market gets more saturated with product Penetration Pricing low cost

Notes 4-1-13 - Arriving at the Final Price Skimming Pricing...

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Arriving at the Final Price Skimming Pricing: reduce price as market gets more saturated with product Penetration Pricing- low cost operations, low costing Prestige/premium pricing- consistently pricing at or near high end of possible price range - Status symbol, high price more people buy, until it gets too high Price lining- new products more expensive, older products lower price - Down step demand curve ___ o \_____ \_____ Odd even pricing- $24.90, make it seem like a good deal even though it’s only 20 cents Target pricing- Ikea sets price for product, what they think consumers want to pay for it. Work backward from price, and design product Bundle Pricing- cheaper than individual items Yield Management pricing- charging different prices to maximize revenue for a set amount of capacity at any given time Standard markup pricing- adding a fixed % to the cost of all items in a specific product class Cost plus pricing- cost plus percent of cost
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