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| − | Some examples of pricing decisions to be made include:
| + | Price Decisions in the Marketing Mix |
| − | * Pricing strategy (skim, penetration, etc.)
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| − | * Suggested retail price
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| − | * Volume discounts and wholesale pricing
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| − | * Cash and early payment discounts
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| − | * Seasonal pricing
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| − | * Bundling
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| − | * Price flexibility
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| − | * Price discrimination
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| − | <html><img src = ""/static/files/MBI/Module%206/pricingrange.PNG" width="600"/></html>
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| − | Frequent mistakes are determining prices [[Mark-up pricing|Mark-up pricing]] and [[Competitive match pricing|Competitive match pricing]].
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| − | Which price maximizes long-term profits?
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| − | * Customer perceived benefits and price elasticity
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| − | * Competition (now and later)
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| − | * Business model
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| − | * Psychological effect
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| − | * Segmentation and positioning
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| − | Value creation per unit looks like this:
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| − | <html>
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| − | <img src="/static/files/MBI/Module%206/ValueCreation.PNG" width=400>
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| − | </html>
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| − | Tests to determine price elasticity:
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| − | {| class="wikitable"
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| − | !Method
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| − | !Advantages
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| − | !Disadvantages
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| − | |Price experiments
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| − | |* Fast<br>* Low risk <br>* Many variants can be tested
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| − | |* External validity (transfer?) <br>* Internal validity (too strong simplification
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| − | |Classic market tests
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| − | |* Realistics <br>* Allows for good predictions
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| − | |* Reaction to heterogeneous prices? <br> * Positioning jeopardized? <br>* High cost / time
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| − | |Tests over the internet
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| − | |* Realistic <br>* Very fast <br>* Limited cost and time
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| − | |* Reaction to heterogenous prices? <br>* "Unfair"? (Amazon) <br>* Long range effects? <br> * Not suitable for all distribution channel
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| − | |}Part of [[Marketing mix (Four P's of marketing)|Marketing mix (Four P's of marketing)]]
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| | [[Category:mbi]] | | [[Category:mbi]] |
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| | [[Category:Term]] | | [[Category:Term]] |
