Chapter 11
Pricing Strategies
Additional Considerations
PEARSON
Objective Outline
Price-Adjustment Strategies
3 Discuss how companies adjust their prices to take into
account different types of customers and situations.
Price Changes
4 Discuss the key issues related to initiating and
responding to price changes.
Objective Outline
Promotional allowance
Time
Time pricing
pricing
A
Afirm
firm varies
varies its
its price
price by
by the
the season,
season, the
the month,
month, the
the day,
day, and
and
even
even the
the hour.
hour.
Psychological Pricing
In using psychological pricing, sellers consider the psyc
hology of prices, not simply the economics.
Another aspect of psychological pricing is reference pric
es prices that buyers carry in their minds and refer to w
hen looking at a given product.
The reference price might be formed by noting current pri
ces, remembering past prices, or assessing the buying situ
ation.
Promotional Pricing
Reason 12