One price strategy and variable pricing with one

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One-Price Strategy and Variable Pricing With one-price, there is no bargaining. Everyone pays the same for most goods in the U.S. Variable pricing allows for haggling and is more common around the world Everyday Low Pricing (EDLP) and High/Low Pricing EDLP reduces investment in promotion High/Low uses heavy promotional pricing and customers wait for the best price Auction Pricing reflects demand. Ex. eBay SET THE EXACT PRICE Cost-Plus Pricing/Markup on Cost Markup on Sales Price Average-Cost Pricing Target Return Pricing DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES Discounts are direct, immediate reductions in price provided to purchasers. Allowances remit monies to purchasers afer the fact. DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES Cash Discounts Trade Discounts Quantity Discounts Seasonal Discounts Promotional Allowances
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DETERMINE CHANNEL DISCOUNTS AND ALLOWANCES Geographic Aspects of Pricing FOB Pricing Uniform Delivered Pricing Zone Pricing EXECUTE PRICE CHANGES A change in an offering’s price –either up or down –can dramatically impact the effectiveness of the overall marketing mix variables in reflecting your offering’s positioning in the eyes of customers. Just Noticeable Difference (JND) The amount of price increase that can be taken without affecting customer demand UNDERSTAND LEGAL CONSIDERATIONS IN PRICING Price Fixing Price Discrimination Deceptive Pricing Predatory Pricing Fair Trade and Minimum Markup Laws
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  • Spring '14
  • JamesE.Zemanek
  • Pricing

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