price is a strong element of marketing strategy of any company. to customers the price is a major indicator of good quality product and also important factor in making decision about its purchase. in deciding the price the business management and marketer must consider, the kind of competition in the market, elasticity of demand of that particular product and the cost of production. most companies adjust their basic price for rewarding their customers due to customer quick responses. such as early payment of bills by customers, bulk purchases, and off-season buying etc, so in these cases companies offer certain amount of discount or allowance to their customers. in segmented pricing strategy, the company sells a product or service at two or more prices, and difference in prices not based on cost. museums are sample example of this as they charge a lower admission from students and senior citizens. companies also charge different prices in different region for same products.
psychological pricing strategy approach considers the psychology of different customers in respect of their products. for example, many customers use price to judge the quality of the product and services. promotional pricing strategy promote or introduce a particular product or service. this is the temporary price companies charged for their products or services and this price may be below then list price and sometimes even below then incurred cost. promotional pricing may also have adverse effects for example constantly reduced prices can deliver a message to customer about lower brand’s quality in the mind of customers. in this pricing strategy companies decide to price its products or service for different customers on the base of geographical location in different parts of the country or world. companies charge high prices in elite class areas and low prices in backward areas. such companies need to decide what prices to they will charge in the different countries in which they operate.
we have already discussed the different factors affecting pricing decisions and approaches that can be used to price the product/services, today we will discuss price-adjustment strategies. a seasonal discount is a price reduction to buyers who buy merchandise or services out of season. under product-form pricing, different versions of the product are priced differently but not according to differences in their costs. members of the segment paying the lower price should not be able to turn around and resell the product to the segment paying the higher price.
when consumers cannot judge quality because they lack the information or skill, price becomes an important quality signal: another aspect of psychological pricing is reference pricing—prices that buyers carry in their minds and refer to when looking at a given product. a company also must decide how to price its products for customers located in different parts of the country or world. other advantages of uniform-delivered pricing are that it is fairly easy to administer and it lets the firm advertise its price nationally. if all sellers used the same basing-point city, delivered prices would be the same for all customers and price competition would be eliminated. in most instances, however, it is simply a result of the higher costs of selling in foreign markets—the additional costs of modifying the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange-rate fluctuations, and higher channel and physical distribution costs.
companies must adjust their basic prices to account for differences in customers and situations. there are seven many companies usually adjust their basic prices keeping in view various customer differences and market price adjustment strategies author comment setting the base price for a product is only the start. the company must, price adjustment strategies slideshare, price adjustment strategies slideshare, segmented pricing, price adjustment strategies pdf, coca cola price adjustment strategies.
a. price-adjustment strategies. companies usually adjust their basic prices to account for various customer price adjustment strategies for business. ta marketing comments off on price adjustment strategies for business. the price adjustment strategies relate to all the strategies implemented by an such as consumer perception, economic conditions, law and order, the marketing objectives of the company, etc.,
When you search for the price adjustment strategies in marketing, you may look for related areas such as price adjustment strategies slideshare, segmented pricing, price adjustment strategies pdf, coca cola price adjustment strategies. what is price adjustment strategies? what are the 4 types of pricing strategies? what are the 5 pricing strategies in marketing? what are the situations that cause price adjustment?