A market pricing method that is not only used to set a product’s initial price but also determines whether production is viable since this method begins by first using research to determine what customers are willing to pay and from this working backwards (factoring out costs) to assess production viability.
A type of psychological pricing where price is set based on customers’ perception of a significant difference in cost between products priced at a whole number value and products priced slightly below this whole number.
A form of standard price adjustment that, in general, increases the initial price to customers within certain geographic areas to cover increase costs to the marketer such as transportation costs, taxes and tariffs.
A type of psychological pricing where initial price is set based on customers’ perception of a correlation between perceived price and product quality where higher priced products are perceived has being higher quality compared to a lower priced product.
A process for setting the initial price for a product, mainly found in government and business markets where multiple sellers compete for a large purchase, that requires the marketer to set price without direct knowledge of competitors’ pricing since, in most situations, prices are not made known until a purchase is awarded.
A process for setting the initial price for a product that bases price largely competitor pricing and includes such methods as Below Competition Pricing, Above Competition Pricing and Parity Pricing.
Key component of the marketer’s toolkit that represents decisions on the methods and strategies needed to determine what a customer will give up in exchange for obtaining value from a marketer’s product.
