Escolar Documentos
Profissional Documentos
Cultura Documentos
P2 P2
Price Price
P1 P1
Q2 Q1 Q2 Q1
Quantity Demanded Per Period Quantity Demanded per Period
(a) Inelastic Demand (b) Elastic Demand
Factors Affecting Price Sensitivity
• Leader price
– Very compertitive
– ‘Loss leaders’
– Offer heavy discounts
– Increase in store visits, perception and purchase of
good volume
– e.g: Supermarkets
Demand-oriented pricing
techniques
• Market penetration pricing
– Entry pricing technique
– Competitive pricing adopted for fast establishment of
a brand or service
• Psychological pricing
– Odd pricing
– Perception of less bandwidth pricing
•
–
Demand-oriented pricing
techniques
• Everyday low pricing
• Continuity of discounted pricing
• Perception of fairness
• Reduced advertising
• Improved customer service management
• Reduced stock outs and improved inventory
• Increase profit margins
•