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