Price-Quality Inferences PDF

CONTINUATION PRICE QUALITY INFERENCES PRESENTED BY: KAREN L. CABRIAS  Price-Quality Inferences Other firms that use Pricing for market penetration are Smartphone providers In using Price Taker, SM Investments Corporation (SMIC), also known as SM Group,...

CONTINUATION PRICE QUALITY INFERENCES PRESENTED BY: KAREN L. CABRIAS  Price-Quality Inferences Other firms that use Pricing for market penetration are Smartphone providers In using Price Taker, SM Investments Corporation (SMIC), also known as SM Group, is a Philippine Conglomerate with interest in shopping mall development and management in retail, real estate, development, banking, and tourism. The company is reselling a different kind of product in its markup but still somehow not too much higher in the prevailing market price to avoid conflicts.  Price Transparency In using this, many products have these kinds of situations also. Same usage with different styles, designs, materials, quality, and performance. The burger has a few components, the burger consists of Have more components such as lettuce, typical buns heated in the same pan where the patty is pickles, tomatoes, dressings, onions, and the cooked making it greasy and oily, mixed with mayonnaise well heated buns and 100% beef patty. and ketchup dressing and thin patty. McDonald’s provides a big space with tables Has a few chairs in the counter of the stall and it can also and chairs for dine-in customers be seen in a roadsides and busy areas outside such as markets. Price Optimization Software Pricing Escalation They offer buy 1 take 2 to all items One of the highest yielding banana but they are doing it every year. plantations in the world, is engaged in Since every month, the year is the production and expert of fresh holiday season they taught of Cavendish bananas to Japan, Hong how they will optimize the prices Kong, China, Korea, Middle East, Russia, of their product while emptying Malaysia, and Singapore under Del their inventory and having a great Monte Brand name. revenue.  Product Quality Leadership Profit Based Not all company used these profit-based pricing Potato Corner employs a product quality strategies, It is only suitable for Monopoly and leadership strategy that focuses on Monopolistic Competition. Meralco is a monopoly maintaining high standards for its food company that used a profit-based pricing strategy where all the consumers cannot complain when offerings, particularly its flavored fries. the company increases the price of its services This approach is crucial in the competitive because it is the only largest distributor company fast-food market, where quality can that can supply electrical power. significantly influence customer loyalty and Using this Profit-based pricing strategy Meralco is brand reputation. free to decide on their desire profit.  Promotional Pricing Promotional Markdown Walter Mart Supermarket IGA is one of the Zark’s Burger Eight (8) Pesos Burger Major Players in the Retail Industry in the Anniversary promo. A company that is known Philippines today. As one of the youngest and to have used promotional pricing effectively is fast growing supermarket chains, Walter Mart Zark’s Burger, a local food chain in the Supermarket has gained a sizeable market Philippines. They launched a promo of Php since it operated in the early in the 90's and 8.00 Ultimate Burger for the first 80 has been in the market for 25 years. customers in all their branches in celebration of their 8th anniversary.  In using Product Bundle Pricing 1. Burger king uses a market-oriented pricing strategy as it’s primary approach to pricing. Burger King’s secondary pricing approach is the bundle pricing strategy. 2. Disney Bundle Disney plus price is bundled package option for P762.97/month, one can get Disney Plus, Hulu, and ESPN+ if one can buy each individually, the total cost would be P1,053.94/month. New subscribers can try the service for free for the first seven days  In using Product Bundle Pricing 3. Sony Corporation - A firm would typically select a high priced product, and they offer complimentary products at a slightly discounted rate, This strategy is encouraging consumers to buy all the products within the bundle, where they may have only previously bought the single high priced item. In using Promotional Pricing 1. Shawarma Shack The Shawarma Shack Franchise is the first and real home of buy 1 take 1 Shawarma, started as a humble shawarma shack in Divisoria, this unique shawarma food cart business grew into a top shawarma brand with multiple store outlets beloved by mall-goers across luzon. 2. Starbucks Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of early 2019, the company operates over 30,000 locations worldwide.  In using Promotional Pricing 3. Shoppe (Shopping App) Shopee is a Singaporean e-commerce platform headquartered under the Sea Group, which was founded in 2009 by Forrest Li. Shoppe first launched in Singapore in 2015, and since expanded its reach to Malaysia, Thailand, Taiwan, Indonesia, Vietnam, Brazil, and Philippines. Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, wraps up its largest Shopee 11.11 Big Sale  In using Psychological Pricing The following firms did the same pricing strategy: The average shopper probably Apple has never made maximum thinks amazon has the lowest sales it’s end goal, it has always prices anywhere on the web. been about focusing on maximum That’s not always true because Amazon will tweak its prices profit in the short-term. Before each many times per hour ( equaling generation of Apple products is millions of individual price released, it has already stirred the change per day) taking psychological pricing pot by advantage of the psychology of creating curiosity and setting price perception expectations. In using Psychological Pricing, Wallmart may be an example Walmart was founded by Sam Walton, and headquartered in Bentonville, AR. the first Walmart opened in Rogers, AR in 1962. It enjoys the unique distinction of being the world’s biggest private employer. It sells everything from general merchandise, groceries, vegetables, and the most store also have a pharmacy, photo processing center, optical center, mobile store, and many more.  In using Random Discounting Strategy, many businesses uses a random discounting strategy to capture the attention of consumers. Moreover, this can be use to increase foot traffic to such online businesses. For instance are Groupon, Walter Mart, SM Supermarket, and Pizza Hut Philippines. Groupon is a daily deal website that enables users to digitally purchase vouchers and coupons at discounted rates. The website was launched in 2008 and its service initially available in only a few selected cities in the Unites States, have grown both nationwide and internationally. It is currently the most popular discount and promo code website in the Unites States, connecting millions of subscribers with local merchants by offering activities, travel, goods, and services worldwide. ABENSON utilizes Random Discounting to increase the demand on their old stocks of products, for instance, it is affiliated products of smartphones namely: Vivo, Huawei, Oppo, and Xiao Mi. Abenson profoundly creates an online website as an embracement of new technology. It is a reinforcement to lessen leafleting and tarpaulin strategy as technology offers easy access to information, discounts, promos, and sales.  Walter Mart Malls, then called Shopping Centers, is the first community shopping center format in the Southern Luzon. In terms of customer habit, Walter Mart has become the Third Place wherein, the daily grind of a customer’s life, Walter Mart has essentially become the “Reliable Link” between their home and their place of work. and they utilize Random Discounting to increase sales and to co-create convenience to customers daily budget  SM Supermarket, SM Corporation uses various strategies when it comes to pricing per business segment. One of those pricing strategies is Random Discounting which is commonly incurred in SM Supermarkets. It is being utilized in SM Supermarket as it offers short term products. Here is the sample of Random Discounts exercised by SM Supermarket  Pizza Hut Philippines, they have their newest promotion that uses Random Discounting Strategy with the article “ First 100 fans upload gets a FREE LARGE Panalo Hawaiian Pan Pizza” This is made as Pizza Hut Philippines sponsored Sinulog Festival to create social engagement.  In using Reduce Price For cheaper price, Halo-Halo served by Mang Inasal is the example, they have a promo that can reduce the price of it. When one avail their other food like chicken with rice it less the price or one can just add P50 to avail it. In using Reduction of Discounts Comparison and contrast to other firms who utilize the same pricing strategy, A researcher herself bought a single order of liempo in a grilled restaurant in Makati which is cost P200 and a single order of liempo in Laguna cost P80. These prices vary since it was a seasonal so from the original price itself, it was lowered.  In using Resale Price Maintenance In using Retail Price Mark-up The best example of company and product Safeguard Soap is reliable and respected is Mouthwash from Colgate. The stores of Protector product. it is an antibacterial and mercury, pure gold, and other grocery deodorant soap that is recommended for markets that the product of Colgate have a normal skin types. Mark-up refers to the fixed-priced in their product. Even their value that a player adds to the cost price of toothpaste has the price in the box that a product. The value added is called the shows how much is the product. mark-up. The mark up added to the cost price usually equals the retail price In using Scanned Versus Posted In using Sealed Bid Pricing Prices is a procurement method where Scanned Prices - is the price that is suppliers or contractors submit displayed when a product is scanned their bids for a project or at the checkout using a barcode contract in sealed envelopes, scanner. This is the price that ensuring confidentiality until a customers see on the cash register or specified opening date. This self-checkout screen process is designed to promote Posted Prices - is the price that is displayed on the product itself or near fairness and transparency in it in the store. This includes prices competitive bidding shown on shelf tags, labels, or advertisements  In using Selecting the Final In using Segmented Pricing Price also known as price segmentation refers to the critical step of or price differentiation, is a determining the exact price at marketing strategy where which a product or service will be businesses set different prices for sold after considering various the same product or service based influencing factors. Also, taking on various customer characteristics into account multiple elements or market segments. This approach that affect pricing decisions. This allows companies to maximize step is essential for ensuring that revenue by aligning prices with the price aligns with both market customers' willingness to pay. conditions and business objectives THANK YOU