MKTG 2800 Lecture Notes - Lecture 14: Price War, Dynamic Pricing, Predatory Pricing
4 Sep 2016
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Skimming pricing: setting the highest initial price that customers who really desire the product are willing to pay. Penetration pricing: setting a low initial price on a new product to appeal immediately to the mass market (opposite of skimming pricing) Prestige pricing: setting a high price so that quality or status-conscious consumers will be attracted to the product and buy it. Odd-even pricing: setting prices a few dollars or cents under an even number. Target pricing: manufacturer deliberately adjusting the composition and features of a product to achieve the target price to consumers. Bundle pricing: the marketing of two or more products in a single package price. Yield management pricing: the charging of different prices to maximize revenue for a set amount of capacity at any given time. Standard markup pricing: adding a fixed percentage to the cost of all items in a specific product class.
