Pricing Strategies
Understanding and Capturing Customer Value
W. Rofianto
What Is a Price?
The amount of money charged for a
product or service, or the sum of the
values that customers exchange for
the benefits of having or using the
product or service
Major Pricing Strategies
Value-Based Pricing
Value-Based Pricing
Cost-Based Pricing
Competition-Based Pricing
no matter what price they charge—low or high— companies need to
offer great value for the money
▪ Under pure competition, the market consists of
many buyers and sellers trading in a uniform
commodity, sellers in these markets do not spend
much time on marketing strategy
▪ Under monopolistic competition, the market
consists of many buyers and sellers trading over a
range of prices rather than a single market price.
Sellers try to develop differentiated offers
▪ Under oligopolistic competition, the market
consists of only a few large sellers, price becomes
a major competitive tool
▪ In a pure monopoly, the market is dominated by
one seller, Pricing is handled differently in each
case.
New Product Pricing Strategies
Product Mix Pricing Strategies
Price Adjustment Strategies
Price Changes
Initiating Price Cuts – excess capacity, strong price competition,
weakened economy
Initiating Price Increases – inflation, cannot supply all that its customers
need
Responding to
Competitor
Price Changes
Public Policy Issues in Pricing
