PRESENTATION

Price Adjustment Strategies

By

MEHVISH REHMAN

UNIVERSITY OF GUJRAAT

Price Adjustment Strategies

Companies usually adjust their basic prices to

account for various customer differences

andchanging situation.

Price Adjustment Strategies

Discount and allowance Pricing

Segment Pricing

Psychological pricing

Promotional pricing

Value pricing

Geographic Pricing

International Pricing

Price Adjustment Strategies

Discount A straight reduction in price on purchase during a stated period of time

Cash discounts

Quantity discount

Functional discount

Seasonal discount

Examples of discount

Price Adjustment Strategies

AllowancwPromotional oney paid by an manufactured to

retailers in returns for an agreement to featuer the manufacture's product in some way.

Tradw-in Allowance

Promotional Allowance

Examples of allowance

Price Adjustment Strategies

Segment Pricing:Selling product and services at two or more

prices, where the difference in price is not based on the difference in costs.Customer segmented pricingProduct form pricingLocation segmented pricingTime segmented pricing

Price Adjustment StrategiesSegmented Pricing

Price Adjustment Strategies

Customers segment pricing

Different customers paydifferent prices for thesame product or servicese.g may charge a loweradmission for citizen and

college students.

Price Adjustment Strategies

Product form pricing

different versions of the

product priced differently but

not according to different in

ther cost

1 liter bottle's price

isdifferent from 2.5 liter bottle.

Price Adjustment StrategiesLocation Segment pricing

Company charge different prices for different location, even though the cost is same.

Price Adjustment StrategiesTime pricing

The firms varies its prices by the season, month,

week, day and even the hour e.g price of electricity

Price Adjustment Strategies

Psychological PricingA pricing approach that consider the psychology

of the price and not simply the economics, the price is used to say somthing about the produc.

Adjusting prices for psychological effect.

Consumers usually perceive the higher priced product as having higher quality

References Pricing

Price Adjustment Strategies

Price Adjustment Strategies

Promotional pricingTemorarily pricing products below the list price and sometimes even below cost, to increase short-run sales.

To increase buying excitement and urgency

to attract customers

To gain market acceptance

Price Adjustment StrategiesPromotional pricing

Price Adjustment StrategiesExamples of Promotional pricing

Price Adjustment Strategies

Geographical pricingSetting prices for the customrs located in

different parts of the country or world.

FOB- Origin Pricing

Uniform-Delivered Pricing

Zone Pricing

Bsing-point pricing

Freight-absortionnpricing

Examples of Geographical pricing

Price Adjustment Strategies

Dynamic of Pricing

Adjusting prices continually

to meet the characteristics and

needs of individual customers

and situations.

Internationsl pricing

THANK YOU