a price 

reduction to buyers who pay their bills promptly.  cash discount

a price reduction to buyers who buy large volumes.  quantity discount

Discount
trade-channel members who perform certain functions,
 functional discount (trade discount)
such as selling, storing, and record keeping. 

a price reduction to buyers who buy merchandise or services out of season.  seasonal discount Discount and Allowance Pricing Market-skimming pricing (or price skimming): means setting a high price for a new
Market-Skimming Pricing product to skim maximum revenues layer by layer from the segments willing to pay
the high price, the company makes fewer but more profitable sales. 
price reductions given for turning in an old
item when buying a new one.
 trade-in allowances  New Product Pricing Strategies
Allowance Companies set a low initial price to penetrate the market quickly and deeply—to
Market-Penetration Pricing
attract a large number of buyers quickly and win a large market share. 
payments or price reductions that reward dealers for
promotional allowances 
participating in advertising and sales-support programs.
Setting the price steps between various products in a product line based on cost differences
Product Line Pricing
Customer-segment pricing: different customers pay between the products, customer evaluations of different features and competitor’s prices.
different prices for the same product or service.
Optional product pricing The pricing of optional or accessory products along with a main product.
Product form pricing: different versions of the product are priced
differently but not according to differences in their costs.
sells a product or service at two or more prices, even though Setting a price for products that must be used along with a main product.
Segmented Pricing
the difference in prices is not based on differences in costs. Captive product pricing
Location-based pricing: charges different prices for different locations,
even though the cost of offering each location is the same. Product Mix Pricing For service, the price can be broken into: fixed fee and variable usage fee.
Strategies
Time-based pricing: a firm varies its price by the Setting a price for by-products to make the main product’s price more competitive.
season, the month, the day, and even the hour.  By-product pricing
The by-products themselves can even turn out to be profitable—turning trash into cash. 
Sellers consider the psychology of prices, not simply the
economics, the price says something about the product.
Product bundle pricing Combining several products and offering the bundle at a reduced price.
Psychological Pricing
Reference prices —prices that buyers carry in their
minds and refer to when looking at a given product.
Price cuts
CHAPTER 11: PRICING
Temporarily price their products below list price—and sometimes Price Adjustment Strategies
even below cost—to create buying excitement and urgency.
Promotional pricing STRATEGIES Price increases
Initiating Price Changes
Buyer Reactions to Price Changes
The goods are placed free on board (hence, FOB) a carrier. The
FOB-origin pricing
customer pays the freight from the factory to the destination.
Competitor Reactions to Price Changes

The company charges the same price plus freight to

Price Changes
Uniform-delivered pricing reduce its price to match the competitor’s price.
all customers, regardless of their location.

maintain its price but raise the perceived value of its offer.

The company sets up two or more zones. All customers within a zone pay
Zone pricing  Geographical pricing
the same total price, the more distant the zone, the higher the price.  Responding to Price Changes
improve quality and increase price, moving its brand into
a higher price–value position.
The seller designates some city as a base point and charges
Base-point pricing
all customers the freight cost from that city to the customer.
low-price “fighter brand”—adding a lower-price item
to the line or creating a separate lower-price brand. 
The seller absorbs all or part of the freight charges to
Freight-absorption pricing
get the desired business.
Price-fixing: states that sellers must
set prices without talking to competitors. 
Adjusting prices continually to meet
Dynamic pricing Pricing within Channel Levels
changing conditions and situations in the
marketplace. Predatory pricing—selling below cost with the intention of punishing
Dynamic and Personalized Pricing
a competitor or gaining higher long-run profits by putting competitors out of
Adjusting prices in real time to fit individual customer business.
Personalized pricing
situations, locations, and buying behaviors.
Public Policy and Pricing The Robinson-Patman Act seeks to prevent unfair price discrimination by ensuring
that sellers offer the same price terms to customers at a given level of trade. 
Charging different pricing for customers in different countries: economic conditions,
competitive situations, laws and regulations, and the nature of the wholesaling and  International pricing
retailing system. Retail (or resale) price maintenance—a manufacturer cannot
Pricing across Channel Levels
require dealers to charge a specified retail price for its product. 

Deceptive pricing occurs when a seller states prices or price savings

that mislead consumers or are not actually available to consumers.