Ch 9 Quiz Price Strategies
Off-Peak Pricing
charging lower prices at certain times to encourage customers to come during slack periods (e.g., rentals at the beach)
Multiple or Bonus Pack
combining more than one unit of the same product and pricing it lower than if each unit were sold separately
Bundling
combining two or more products in one unit and pricing it less than if the units were sold separately (e.g., value meals; iPhone apps, music, and videos; Nike - personalized shoe with technology options)
Periodic or Random Discounting
sales conducted at either predictable or non-predictable intervals (e.g., Black Friday)
Prestige or Premium Pricing
setting a price above that of the competition so as to indicate a higher quality that a product is a status symbol. Nike does this. Lower price actually hurts sales
Skimming
setting a price at the highest level the market will bear, usually because there is no competition at the time.
Odd-Even Pricing
setting a price that ends in the number 5, 7, or 9
Partitioned Pricing
setting the price for a base item and then charging extra for each additional component (e.g., warranties, fees, surcharges, taxes, etc.)
Captive Pricing
setting the price for an item relatively low and then charging much higher prices for the expendables it uses (e.g., computer printers/print cartridges)
Price Lining
the practice of setting (usually) three points: good quality, better quality, best quality