MKTG 300 Chapter Notes - Chapter 11: Geographical Pricing

• School: University of San Diego
• Department: Marketing
• Course: MKTG 300
• Professor: O'' Neal Carlton

Document Summary

Abbreviations: - change; comp - company; mktg - marketing; g/s - goods & services; p/s - products & services. Market-skimming pricing (price skimming) (cid:314) setting a high initial price for new product to skim max revenues layer by layer from the market; company makes fewer but more profitable sales. Market-penetration pricing (cid:314) setting a low price for new product to attract a large # of buyers & win a large market share. Product line pricing (cid:314) setting price steps btwn various products in a product line based on cost differences btwn products, customer evaluations of different features, and competitors" prices (establish perceived value differences to support price diff) Optional-product pricing (cid:314) offering to sell optional or accessory products along with the main product. Captive product pricing (cid:314) setting a price for products that must be used along with a main product (ex: blades for razors)