price

Examples of price in the following topics:

• Analysis of Price Discrimination

  • Price discrimination is present in commerce when sellers adjust the price on the same product in order to make the most revenue possible.
  • Second degree price discrimination: the price of a good or service varies according to the quantity demanded.
  • By using price discrimination, the seller makes more revenue, even off of the price sensitive consumers.
  • Premium pricing: uses price discrimination to price products higher than the marginal cost of production.
  • Gender based prices: uses price discrimination based on gender.

• Competition-Based Pricing

  • Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.
  • Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
  • For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
  • One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
  • Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.

• Demand-Based Pricing

  • Demand-based pricing, also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element.
  • These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
  • Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
  • Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
  • By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.

• Price Ceilings

  • A price ceiling is a price control that limits how high a price can be charged for a good or service.
  • A price ceiling is a price control that limits the maximum price that can be charged for a product or service.
  • An example of a price ceiling is rent control.
  • By setting a maximum price, any market in which the equilibrium price is above the price ceiling is inefficient.
  • For a price ceiling to be effective, it must be less than the free-market equilibrium price.

• Psychological Pricing

  • 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.

• Examples of Price Discrimination

  • Price discrimination occurs when identical goods or services are sold at different prices from the same provider.
  • There are three types of price discrimination:
  • Methods of price discrimination include:
  • Companies increase the price of a good and individuals who are not price sensitive will pay the higher price.
  • Gender based prices: in certain markets prices are set based on gender.

• Competitor-Based Pricing

  • 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

• Price Floors

  • A binding price floor is a price control that limits how low a price can be charged for a product or service.
  • A price floor is a price control that limits how low a price can be charged for a product or service.
  • For a price floor to be effective, it must be greater than the free-market equilibrium price.
  • An example of a price floor is the federal minimum wage.
  • If a price floor is set above the equilibrium price, consumers will demand less and producers will supply more.

• Cost-Based Pricing

  • 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

• High/Low Pricing

  • 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.