Podcast
Questions and Answers
This provides managers a systematic structure to deal with the task, while promoting a customer-based orientation toward product design, product value, market segment selection, and competition.
This provides managers a systematic structure to deal with the task, while promoting a customer-based orientation toward product design, product value, market segment selection, and competition.
New Product Pricing Process
It is a vehicle for achieving the company’s business strategy and financial
objectives.
It is a vehicle for achieving the company’s business strategy and financial objectives.
Pricing Process
Everything that a customer has to give up in order to acquire a product or service
- Usually expressed in units of some form of currency
Everything that a customer has to give up in order to acquire a product or service
- Usually expressed in units of some form of currency
Price
Used for new products wanting to gain market share product is priced low so that
it is able to get a hold in the market.
Used for new products wanting to gain market share product is priced low so that it is able to get a hold in the market.
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When a new innovative product is bought out during the first few months high prices
can be charged as there is little competition and the product is popular because it is new.
When a new innovative product is bought out during the first few months high prices can be charged as there is little competition and the product is popular because it is new.
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Charging below cost price to try and attract customers to other products
(normally in supermarkets).
Charging below cost price to try and attract customers to other products (normally in supermarkets).
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Hitting price points that are significant
Hitting price points that are significant
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Charging different people different prices for effectively the same product.
Charging different people different prices for effectively the same product.
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Offering lower prices for a set time period to try and boost sales and sell off
unwanted stock.
Offering lower prices for a set time period to try and boost sales and sell off unwanted stock.
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Charging the same as competitors or
the market leader.
Charging the same as competitors or the market leader.
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Charging a price below average to
drive out competition.
Charging a price below average to drive out competition.
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solely concerned with that type of data is used to measure/estimate the evolution of prices.
solely concerned with that type of data is used to measure/estimate the evolution of prices.
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Used mainly in large department
stores. The price of each product is dependent on how many cost it creates
Used mainly in large department stores. The price of each product is dependent on how many cost it creates
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A target parice is made and then costs are
adjusted so that price can be achieved.
A target parice is made and then costs are adjusted so that price can be achieved.
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seeks to get custoemrs to purchase a product in greater quantities by offering a slight
discount on the greater qauntity. In the display of prices, a price for the purchase of just one item is
displayed along with the price for a larger quantity.
seeks to get custoemrs to purchase a product in greater quantities by offering a slight discount on the greater qauntity. In the display of prices, a price for the purchase of just one item is displayed along with the price for a larger quantity.
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It refers to products having low prices placed on them in an attempt to lure customers to
the business and to make further purchases
It refers to products having low prices placed on them in an attempt to lure customers to the business and to make further purchases
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is used to attempt to get customers to spenda little extra on the product by
purchasing options or extra features.
is used to attempt to get customers to spenda little extra on the product by purchasing options or extra features.
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refers to the charging of diffeent prices for
different quantities of a product, at different times, to different customer griups or indifferent markets,
when these price differences are not justified by cost differences.
refers to the charging of diffeent prices for different quantities of a product, at different times, to different customer griups or indifferent markets, when these price differences are not justified by cost differences.
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Companies can choose a variety of pricing techniques to
motivate consumers to buy early. As the name suggests, these techniques are
considered as an important part of sales promotions.
Companies can choose a variety of pricing techniques to motivate consumers to buy early. As the name suggests, these techniques are considered as an important part of sales promotions.
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It is superficial comparative pricing. It involves setting
an artificially high price and offering the product at a highly reduced price.
It is superficial comparative pricing. It involves setting an artificially high price and offering the product at a highly reduced price.
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This involves coordinating price cuts with advertising for
seasonal or special situations to attract consumers by offering special reduced
prices.
This involves coordinating price cuts with advertising for seasonal or special situations to attract consumers by offering special reduced prices.
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a company can use price to compete by changing its prices or by
reacting to price changes by competitors.
a company can use price to compete by changing its prices or by reacting to price changes by competitors.
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focuses on other price factors of a
product such as distinctive product features, quality, service, packaging, and promotion to
make it meaningfully differentiated from competing brands
focuses on other price factors of a product such as distinctive product features, quality, service, packaging, and promotion to make it meaningfully differentiated from competing brands
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are management decisions about what to charge for the products and
services that companies deliver. To maximize operating inocme, companies produce and
sell units as long as the revenue from an additional unit exceeds the cost of producing it.
are management decisions about what to charge for the products and services that companies deliver. To maximize operating inocme, companies produce and sell units as long as the revenue from an additional unit exceeds the cost of producing it.
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