4. Dynamic Pricing The Internet is ushering in a new era of fluid pricing. PriceSCAN.com is an independent site that provides product comparisons and guides, and searches all merchant sites for the best prices.
10. Product Quality Leadership Four Seasons starts with very high-quality service—”we await you with the perfect sanctuary.” It then charges a price to match.
15. Pricing in Different Types of Markets Pure Competition: Many buyers and sellers where each has little effect on the going market price Monopolistic Competition: Many buyers and sellers who trade over a range of prices Pure Monopoly: Market consists of a single seller Oligopolistic Competition: Few sellers who are sensitive to each other’s pricing/marketing strategies
16. Demand Curve A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged . Figure 9.3
17. Upward Sloping Demand Curve Gibson was surprised to learn that its high-quality instruments did not sell as well at lower prices.
34. Pricing Strategies By-Product Pricing: Setting a price for by-products in order to make the main product’s price more competitive (e.g., sawdust and Zoo Doo) Product Bundle Pricing: Combining several products and offering the bundle at a reduced price (e.g., computer with software and Internet access).
38. Promotional Pricing Special-Event Pricing Cash Rebates Low-Interest Financing Longer Warranties Free Maintenance Discounts Loss Leaders Temporarily pricing products below list price and sometimes even below cost to create buying excitement and urgency. Approaches: