Podcast
Questions and Answers
What type of discount allows fixed or unlimited uses over a specified time period?
What type of discount allows fixed or unlimited uses over a specified time period?
Contingency pricing is a pricing technique where the price is dependent on the outcome of the service.
Contingency pricing is a pricing technique where the price is dependent on the outcome of the service.
True
What is an example of a short-term price reduction?
What is an example of a short-term price reduction?
Temporary discount
The _______ discount is based on the quantity purchased.
The _______ discount is based on the quantity purchased.
Signup and view all the answers
Match the following discount types with their definitions:
Match the following discount types with their definitions:
Signup and view all the answers
What pricing strategy is BritBox using?
What pricing strategy is BritBox using?
Signup and view all the answers
BritBox launched with a higher subscription price than Netflix.
BritBox launched with a higher subscription price than Netflix.
Signup and view all the answers
What is the subscription price of BritBox?
What is the subscription price of BritBox?
Signup and view all the answers
BritBox offers a ___-day free trial to new subscribers.
BritBox offers a ___-day free trial to new subscribers.
Signup and view all the answers
Match the following pricing foundations with their descriptions:
Match the following pricing foundations with their descriptions:
Signup and view all the answers
What is the primary factor for competitors when setting their prices?
What is the primary factor for competitors when setting their prices?
Signup and view all the answers
The foundation of pricing balances cost and demand.
The foundation of pricing balances cost and demand.
Signup and view all the answers
In which country did BritBox launch its streaming service in August 2021?
In which country did BritBox launch its streaming service in August 2021?
Signup and view all the answers
What pricing objective focuses on maintaining a desired level of profitability in unfavorable market conditions?
What pricing objective focuses on maintaining a desired level of profitability in unfavorable market conditions?
Signup and view all the answers
The prestige pricing objective is primarily concerned with low pricing to gain a competitive advantage.
The prestige pricing objective is primarily concerned with low pricing to gain a competitive advantage.
Signup and view all the answers
What segmentation approach is BritBox utilizing for pricing in the UK and South Africa?
What segmentation approach is BritBox utilizing for pricing in the UK and South Africa?
Signup and view all the answers
What is a common strategy for stimulating patronage for a new service?
What is a common strategy for stimulating patronage for a new service?
Signup and view all the answers
The pricing objective that involves adjusting prices according to demand levels is known as __________.
The pricing objective that involves adjusting prices according to demand levels is known as __________.
Signup and view all the answers
The same subscription price is charged for BritBox in both the UK and South Africa.
The same subscription price is charged for BritBox in both the UK and South Africa.
Signup and view all the answers
Which pricing objective aims to ensure critical mass in sales volumes?
Which pricing objective aims to ensure critical mass in sales volumes?
Signup and view all the answers
Which pricing segmentation approach is used by Two Oceans Aquarium based on admission rates?
Which pricing segmentation approach is used by Two Oceans Aquarium based on admission rates?
Signup and view all the answers
In the scenario where UK residents pay £5.99 p/m and South Africans pay R99 p/m for the same service, this illustrates a __________ segmentation approach.
In the scenario where UK residents pay £5.99 p/m and South Africans pay R99 p/m for the same service, this illustrates a __________ segmentation approach.
Signup and view all the answers
Match the following pricing objectives to their descriptions:
Match the following pricing objectives to their descriptions:
Signup and view all the answers
Prices must always be justified economically, regardless of market conditions.
Prices must always be justified economically, regardless of market conditions.
Signup and view all the answers
Which option describes a scenario where pricing differs based on when the service is used?
Which option describes a scenario where pricing differs based on when the service is used?
Signup and view all the answers
What is the primary pricing strategy used by hotels compared to subscription services like BritBox?
What is the primary pricing strategy used by hotels compared to subscription services like BritBox?
Signup and view all the answers
In pricing objectives, what is meant by 'economies-of-scale benefits'?
In pricing objectives, what is meant by 'economies-of-scale benefits'?
Signup and view all the answers
Michaelangelo Hotel in NYC utilizes a __________ pricing approach for its room rates.
Michaelangelo Hotel in NYC utilizes a __________ pricing approach for its room rates.
Signup and view all the answers
Match the pricing segmentation approaches with their descriptions:
Match the pricing segmentation approaches with their descriptions:
Signup and view all the answers
What does Beat2 offer in their hospital plans?
What does Beat2 offer in their hospital plans?
Signup and view all the answers
Purchase-based pricing takes into account the time of purchase.
Purchase-based pricing takes into account the time of purchase.
Signup and view all the answers
Define time-based pricing.
Define time-based pricing.
Signup and view all the answers
______ based pricing is determined by the age group of the consumer.
______ based pricing is determined by the age group of the consumer.
Signup and view all the answers
Match the pricing approaches with their definitions:
Match the pricing approaches with their definitions:
Signup and view all the answers
Which of the following is an example of purchase-based pricing?
Which of the following is an example of purchase-based pricing?
Signup and view all the answers
BestMed's plans offer comprehensive benefits specifically for elderly patients.
BestMed's plans offer comprehensive benefits specifically for elderly patients.
Signup and view all the answers
What determines time-based pricing?
What determines time-based pricing?
Signup and view all the answers
Study Notes
Pricing Objectives
- Survival: Adjust pricing to maintain profitability during unfavorable market conditions by lowering prices.
- Sales Maximization: Aim for high sales volumes to achieve economies of scale, offering a competitive advantage.
- Prestige: Use high pricing strategies to create an exclusive or prestigious brand positioning.
- Social Considerations: Prices may be regulated and need to address social impacts, promoting patronage through pricing tactics.
- Supply & Demand Matching: Implement peak pricing strategies to maximize capacity during high demand and lower prices in periods of low demand.
Foundations of Pricing
- Cost-based Pricing: Establish a price floor based on cost to ensure sustainability and profitability.
- Competition-based Pricing: Prices set according to what competitors charge, influencing market positioning.
- Demand-based Pricing: Price determined by the perceived value customers are willing to pay, balancing cost and demand.
Segmentation Approaches for Pricing
- Time-based Pricing: Pricing varies based on the timing of service usage (e.g., peak vs. off-peak).
- Purchase-based Pricing: Variation depending on location and associated convenience or prestige (e.g., urban vs. rural).
- Customer-based Pricing: Tailoring prices to specific demographics, such as pricing differences for children, adults, and seniors.
Examples of Pricing Techniques
- Contingency Pricing: Prices are dependent on service outcomes, often used where there is high uncertainty or unfamiliarity with the service.
- Cash Discounts: Reduction offered to motivate immediate payment or purchase.
- Quantity Discounts: Price reduction based on the volume of purchases, encouraging larger orders.
- Temporary Discounts: Short-term price reductions aimed at boosting sales, especially under competitive pressure.
Case Study Insights
- BritBox Subscription Pricing: Set at R99.99 in South Africa, aligning closely with Netflix's R99 per month, demonstrating competition-based pricing.
- International Price Segmentation: UK residents pay £5.99 while South Africans pay R99 for the same service, indicating a customer-based pricing strategy.
Additional Notes
- Emphasis on the importance of strategic pricing in attracting customers and maintaining competitiveness.
- Understanding pricing objectives and techniques is crucial for effective marketing and profitability in service industries.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz focuses on understanding the pricing objectives within service marketing, specifically highlighting the prestige pricing strategy. Explore key concepts and their applications as outlined in the 3rd edition of 'Grasping Service Marketing'.