Module # 2 Pricing Strategies
Module # 2 Pricing Strategies
Module # 2 Pricing Strategies
INTENDED LEARNING
OUTCOME
In this lesson, students will be.
PRODUCT PRICING
This strategy is used to set the price of optional
products or accessories along with a main product.
For example refrigerator comes with optional ice maker or
CD players and sound systems are optional product with a
car.
• Adjust basic prices to allow for differences in customers, products, and locations
• Airlines, hotels and restaurants – revenue management or yield management
To be effective:
PROMOTIONAL PRICING
is when prices are temporarily priced below list price or cost to increase
demand.
• Loss leaders
• Special event pricing
• Cash rebates
• Low interest financing
• Longer warrantees
• Free maintenance
12
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