Professional Documents
Culture Documents
Chapter Eleven: Pricing Strategies
Chapter Eleven: Pricing Strategies
Pricing Strategies
Optional-
Product line
product
pricing pricing
Captive-
By-product
product
pricing pricing
Copyright © 2010 Pearson Education, Inc.
Chapter 11- slide 6
Publishing as Prentice Hall
Product Mix Pricing Strategies
Pricing Strategies
Pricing Strategies
Pricing Strategies
Discount and
Segmented Psychologi
allowance
pricing pricing cal pricing
Internationa
l pricing
Pricing Strategies
Pricing Strategies
Pricing Strategies
• Price cuts
• Price increases
●
Excess capacity
●
Increased market share
●
Cost inflation
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Increased demand
●
Lack of supply
●
New models will be
available
●
Product is “hot” ●
Models are not selling
●
Company greed well
●
Quality issues
Copyright © 2010 Pearson Education, Inc.
Chapter 11- slide 26
Publishing as Prentice Hall
Price Changes
Responding to Price Changes
Questions
– Why did the competitor change the price?
– Is the price cut permanent or temporary?
– What is the effect on market share and profits?
– Will competitors respond?
Solutions
– Reduce price to match competition
– Maintain price but raise the perceived value
through communications
– Improve quality and increase price
– Launch a lower-price “fighting” brand