Examples of price discrimination in the following topics:
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- Price discrimination is the sale of identical goods or services at different prices from the same provider.
- Price discrimination also occurs when the same price is charged for goods with different supply costs.
- Although price discrimination is the producer's or seller's legal attempt to charge varying prices for the same product based on consumer demand, price discrimination can be illegal in some cases.
- Price discrimination in intellectual property is also enforced by law and by technology.
- Construct the concept of price discrimination relative to legal concerns in pricing
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- These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
- Price discrimination exists when sales of identical goods or services are transacted at different prices from the same provider.
- Price discrimination also occurs when the same price is charged to customers that have different supply costs.
- Price discrimination requires market segmentation and some means to discourage discount customers from becoming resellers and, by extension, competitors.
- By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.
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- Yield management systems give managers optimal control of inventory to sell it to the right customer at the right time for the right price.
- This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so.
- The models attempt to forecast the total demand for all products or services they provide, by market segment and price point.
- Optimization can help the firm adjust prices and allocate capacity among market segments to maximize expected revenues.
- Firms faced with a lack of pricing power sometimes turn to yield management as a last resort.
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- Psychological pricing is a marketing practice based on the theory that certain prices have meaning to many buyers.
- Inferring quality from price is a common example of the psychological aspect of price.
- Another manifestation of the psychological aspects of pricing is the use of odd prices.
- We call prices that end in such digits as 5, 7, 8, and 9 "odd prices. " Examples of odd prices include: $2.95, $15.98, or $299.99 .
- Psychological pricing is one cause of price points.
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- The result is that consumers in the foreign nation pay high prices, get less satisfactory products, and have fewer jobs.
- The North American Free Trade Agreement (NAFTA) further boosts export sales by enabling companies to sell goods at lower prices because of reduced tariffs.
- These nations do not usually try to strictly regulate imports or discriminate against foreign-based firms.
- Protective tariffs are established in order to protect domestic manufacturers against competitors by raising the prices of imported goods.
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- Competition-based pricing describes a situation where a firm has a pricing policy that reflects the pricing decisions of competitors.
- Competition-based pricing describes the situation where a firm does not have a pricing policy that relates to its product, but reflects the pricing decisions of competitors.
- Similar to competition based pricing, going rate pricing reflects the price that is being used by most of the companies within the industry, an industry standard more or less.
- It can lead to price wars.
- Show the basis of competitor-based pricing as a general pricing strategy
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- Cost-based pricing is the act of pricing based on what it costs a company to make a product.
- Cost-based pricing is the act of pricing based on what it costs a company to make a product.
- Cost-based pricing involves setting a price such that:
- Cost-based pricing is included in what is considered the "3 C's" of pricing.
- Describe cost based pricing as it relates to general pricing strategies
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- High-low pricing is a strategy where most goods offered are priced higher than competitors, but lower prices are offered on other key items.
- High-low pricing is a method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors.
- The lower promotional prices are designed to bring customers to the organization where the customer is offered the promotional product as well as the regular higher priced products.
- High-low pricing is a type of pricing strategy adopted by companies, usually small and medium sized retail firms.
- The way competition prevails in the shoe industry is through high-low price.
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- Value-based pricing seeks to set prices primarily on the value perceived by customers rather than on the cost of the product or historical prices.
- Value-based pricing sets prices primarily, but not exclusively, on the value, perceived or estimated, to the customer rather than on the cost of the product or historical prices.
- How important is price?
- Examples include matching the price of competitors, a traditional price charged for a particular product, and charging a price that covers expected costs.
- Examine the rationale behind value based pricing as a pricing tactic
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- A list price must be close to the maximum price that customers are prepared to pay and yield the maximum profit for the retailer.
- Pricing is a key variable in micro-economic price allocation theory and part of the four "P's-" of the marketing mix; pricing, product, promotion and place.
- The manufacturer's suggested retail price (MSRP), list price or recommended retail price (RRP) of a product is the price which the manufacturer recommends to the retailer.
- Retailers must ask questions to set a list price.
- A good pricing strategy is one that strikes a balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation).