14-1 CHAPTER STRATEGIC PRICING METHODS 14 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

14-1

CHAPTER

STRATEGIC PRICING METHODS

14

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

14-2

Pricing Strategies

14-3

1. What are the three different strategies for setting pricing?

2. How can you use value-based strategies for setting prices?

Check Yourself

14-4

Pricing Strategies

14-5

vs..

Everyday low pricing (EDLP) High/low pricing

Everyday Low Pricing vs.. High/Low Pricing

Photodisc Collection/Getty Images©Lars A Niki

14-6

Wine ranges in price from under $5 a bottle to over $100K a bottle. How do you know which to

choose?

Wine ranges in price from under $5 a bottle to over $100K a bottle. How do you know which to

choose?

The Price-Quality Relationship

• Most inexperienced consumers use price as an indicator of quality

• Price becomes crucial when consumers have little knowledge about certain products/brands

Steve Mason/Getty Images

14-7

Pricing strategyPricing strategy Pricing tacticsPricing tactics

Pricing Tactics

Digital Vision/Getty Images

Digital Vision/Getty Images

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Pricing Tactics Aimed at Consumers

14-9

Business to Business Pricing Tactics and Discounts

14-10

1. What are some consumer-oriented pricing tactics?

2. What are some business-oriented pricing tactics?

Check Yourself

14-11

Legal Aspects and Ethics of Pricing