MKT 304 Section 02 Class 12 Pricing Strategy Course Website Post
Pricing Strategy
Today’s Agenda
• Announcements
• Chapters 9 & 11
May 6, 2015
Refresher
• Branding
• New product development (NPD)
– NPD process
• Product life cycle (PLC)
– Product development, introduction, growth, maturity, decline
– Dealing with declining products
– Extending the PLC
Review Questions
A few review questions from chapters 8 & 9
Annie is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) convenience
B) unsought
C) shopping
D) augmented
E) specialty
A barber is not able to store haircuts for later sale. This is an example of which of the following? A) service perishability
B) low-context services
C) service intangibility
D) service inseparability
E) service variability
________ is used when two established brand names of different companies are used on the same product. A) Co-branding
B) Cannibalization
C) Brand equity
D) Internal marketing
E) A brand extension
New-product development starts with
________.
A) concept testing
B) test marketing
C) idea screening
D) concept development
E) idea generation
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the newproduct innovation process? A) concept testing
B) crowdsourcing
C) brainstorming
D) outsourcing
E) idea screening
Where We’ve Been….
Price Definition
Name your price
Price: the only mix element that generates revenue
Price: a highly visible tool
Price: an indicator of quality, in the absence of other information
Example….
• Effects of price on perceived quality
Plassmann, O’Doherty,
Shiv & Rangel (2008)
Major Pricing Strategies
Value-Based
Cost-Based
Competition-Based
Types of Value-Based Pricing
Good Value perceptions Everyday
Low Pricing
(EDLP)
HIGH-LOW
Cost-Based Pricing
• Set the floor for the price the
Today’s Agenda
• Announcements
• Chapters 9 & 11
May 6, 2015
Refresher
• Branding
• New product development (NPD)
– NPD process
• Product life cycle (PLC)
– Product development, introduction, growth, maturity, decline
– Dealing with declining products
– Extending the PLC
Review Questions
A few review questions from chapters 8 & 9
Annie is planning to buy a new washing machine. She notices that they come in numerous price ranges. She wants to make sure she gets the most for her money. This product is a(n) ________ product. A) convenience
B) unsought
C) shopping
D) augmented
E) specialty
A barber is not able to store haircuts for later sale. This is an example of which of the following? A) service perishability
B) low-context services
C) service intangibility
D) service inseparability
E) service variability
________ is used when two established brand names of different companies are used on the same product. A) Co-branding
B) Cannibalization
C) Brand equity
D) Internal marketing
E) A brand extension
New-product development starts with
________.
A) concept testing
B) test marketing
C) idea screening
D) concept development
E) idea generation
Which of the following is the practice of inviting broad communities of customers, employees, independent researchers, and members of the public into the newproduct innovation process? A) concept testing
B) crowdsourcing
C) brainstorming
D) outsourcing
E) idea screening
Where We’ve Been….
Price Definition
Name your price
Price: the only mix element that generates revenue
Price: a highly visible tool
Price: an indicator of quality, in the absence of other information
Example….
• Effects of price on perceived quality
Plassmann, O’Doherty,
Shiv & Rangel (2008)
Major Pricing Strategies
Value-Based
Cost-Based
Competition-Based
Types of Value-Based Pricing
Good Value perceptions Everyday
Low Pricing
(EDLP)
HIGH-LOW
Cost-Based Pricing
• Set the floor for the price the