Pricing

Constraints…
 Price Fixing…
 A method in which businesses who are in competition
with each other set up a strategy to fix up prices of
particular commodities to avoid price competition.
 Artificially setting prices at a certain level, in
exception to the workings of a free market, or
conspiring to do same. The test is whether such
actions or agreements restrain free traders’ ability to
sell according to those traders’ judgment.
 Types Of Price Fixing

Horizontal Vertical
 Horizontal price fixing

 Price fixing by competitors on the same level,

such as all supermarkets selling cereal for the
same price.
 Vertical price fixing
 Price fixing between or among parties at
different levels of distribution, such as
manufacturers and distributors trying to
control retail price.
 Price Discrimination..
 A pricing strategy that charges customers
different prices for the same product or service.
 In pure price discrimination, the seller will
charge each customer the maximum price that
he or she is willing to pay.
 In more common forms of price discrimination,
the seller places customers in groups based on
certain attributes and charges each group a
different price.
 Deceptive Advertising…
 False advertising or deceptive advertising is the use
of false or misleading statements in advertising.
 As advertising has the potential to persuade people
into commercial transactions that they might
otherwise avoid, many governments around the world
use regulations to control false, deceptive or
misleading advertising.
 Truth in labeling refers to essentially the same
concept, that customers have the right to know what
they are buying, and that all necessary information
should be on the label.
Thank You…
Presented By:
Amit
Ms. Lucky Singh
Mr. Anshul Aggarwal.