Chapter 3
Capturing Customer Value: Price to Exchange
The concept of price in marketing has significantly evolved over the years. Traditionally, price was viewed merely as a monetary amount customers…
The 5 Cs of pricing provide a comprehensive framework for strategic pricing decisions. They include:
Company Objectives: The company's goals…
The internal organizational factors impacting price decisions are as follows:
Marketing Strategies- Strategies like Segmentation, targeting, and…
External factors that significantly impact a firm's pricing decisions are as follows:
Market Structures: In a perfectly competitive market,…
The three primary pricing methods that firms use to develop their pricing strategy are:
Cost-based Pricing: In this method, prices are set by…
The two key pricing strategies in marketing are EDLP-Everyday Low Pricing Strategy and High/Low Pricing Strategy.
Everyday Low Pricing (EDLP):…
Pricing tactics are short-term strategies businesses use to sell their offerings to meet specific objectives such as boosting sales, attracting new…
Some more pricing tactics include the following.
Rebate Pricing involves offering customers a partial refund after they have purchased a product…
The two most popular new product pricing strategies are market skimming and market penetration pricing.
• Market Skimming: involves setting…
Product mix pricing strategies guide businesses in optimizing profits across their product lines, each tailored to market needs and consumer…
The product mix pricing strategies are:
Product Line Pricing allows a company to offer a range of similar products that vary in quality, features, or…
Price adjustment strategies refer to how companies modify their basic prices to account for customer differences and changing market conditions.…
Price adjustment strategies also vary based on customer demand, location, and competition.
• Dynamic and Internet Pricing is a strategy where…
Price cuts and increases are significant business strategies influencing profitability, market share, and customer perception.
Price Cuts:
Price cuts…
Public policy issues in pricing revolve around the government's role in regulating and influencing business pricing strategies to protect…
