Developing pricing strategies and programs - Setting the price
13 important questions on Developing pricing strategies and programs - Setting the price
When to use price cues?
- Customers purchase item infrequently
- Customers are new
- Product designs vary over time
- Prices vary seasonally
- Quality or sizes vary across stores
Six steps of price setting:
- Selecting the pricing objective
- Determining Demand
- Estimating Costs
- Analyzing competitors' costs prices and offers
- Selecting a pricing method
- Selecting the Final price
Customers are less price sensitive when
- There are few or no substitutes or competitors
- They do not readily notice the higher price
- They are slow to change their buying habits
- They think the higher prices are justified
- Price is only a small part of the total cost of obtaining, operating and servicing the product over its lifetime
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
What is an elastic demand?
Two types of costs
- Fixed costs (overhead); do not vary with production level or sales revnue
- Variable costs; vary directly with the level of production
What is the experience curve/ learning curve?
How can a firm anticipate a competitor's reaction?
- Assume competitor reacts standard
- Assume competitor treats each price difference or change as a fresh challenge and reacts according to self-interest at the time. (research final situation, recent sales, customer loyalty, corporate objectives before setting price)
What are the six price setting methods and their meaning?
- Markup pricing; total project cost + standard markup for profit
- Target-return pricing; costs, profit, and minimal yield to compensate investment are in this price
- Perceived-value pricing; base price on perceived value, deliver more unique value and prove it!
- Value pricing; low costs without sacrificing quality.
- Going-rate; based on price on competitors used when costs are difficult to measure
- Auction-type
What is an English auctions and how is their pricing procedure?
- Have one seller and many buyers
- Bidders raise the offer price until the top price is reached. (ascending bids)
- Highest bidder gets the item
What is a Dutch auction and how is their pricing procedure?
- one seller and many buyers OR one buyer and many sellers
- Auctioneer announces high price, then slowly decreases until bidder accepts
What is a Sealed-Bid auction?
- Suppliers submit one bid, cannot know what the other bids.
Companies can use several pricing techniques to stimulate early purchase, which?
- Loss-leader pricing
- Special event pricing
- Special customer pricing
- Cash rebates
- Low-interest financing(loan)
- Longer payment terms
- Warranties and service contracts(free)
- Psychological discounting(299)
How can the brand leader respond to competitive price cuts?
- Maintain price
- Maintain price add value
- Reduce price
- Increase price and improve quality
- Launch a low-price fighter line
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
