Match the following:List - I List - II (a) Customer-segment pricing (i) Pricing products differently but not proportionately to their costs (b) Product-form pricing (ii) Pricing products differently even though the cost of offering at that arena is the same (c) Location pricing (iii) Pricing differently even though the products are the same (d) Time pricing (iv) Pricing differently for the different seasons
(a)-(iii), (b)-(i), (c)-(ii), (d)-(iv)
These are the forms of discriminatory pricing in Kotler's scheme, where a firm charges different prices to different buyers, versions, places or times. Each is matched to the basis on which its price differs.
Customer-segment pricing charges different customer groups different prices for the same product - so it is 'pricing differently even though the products are the same', giving (a)-(iii). Product-form pricing prices different versions of a product differently, but not in proportion to their costs - the price gap between forms exceeds the cost gap - giving (b)-(i). Location pricing charges different prices at different places even though the cost of offering the product is the same at each location - as with different-priced theatre seats - giving (c)-(ii). Time pricing varies the price by season, day or hour, giving (d)-(iv).
Putting these together gives (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv), which is the second code. The distinguishing question in each case is what dimension the price varies with while cost or product is held constant.
Hence the correct match is (a)-(iii), (b)-(i), (c)-(ii), (d)-(iv).
Similar Questions
Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy ?
The practice of selling below cost, with an intention to destroying the competitor is referred to as :
Cost - Plus pricing is not suitable for :
Match the items of List - I with that of List - II and suggest the correct code :
List - I (Pricing Strategies) List - II (Explanations) (a) Customary pricing (i) Ending a price with 99 paise (b) Skimming (ii) pricing a product based on perceived expectations of customers (c) Penetration pricing (iii) Setting a high price which gradually reduces as competitors enter the market (d) Psychological pricing (iv) Offering at a low price for a new product during its initial offering Code :
Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
The practice of selling below cost, with an intention to destroying the competitor is referred to as:
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy?
When the Companies pay less attention to its own costs or demands and bases its price largely on competitors’ prices, then it is known as :
Match the items of the List-I with those of the List-II and suggest the correct code from the following:
List-I List-II i. Loss Leader a. Locational price differentials ii. Unchanged Pricing b. Products with high initial demands iii. Basing Point Pricing c. Product line pricing iv. Skimming Pricing d. Oligopoly pricing Codes:
Important Questions from Pricing decisions
- Which of the following are the informal pricing methods ?
I. Cost plus
II. Competitive
III. Rate of return
IV. Trial and error
Codes : Which among the following is not an internal factor in pricing decisions?
Find the most appropriate sequence of life-cycle of price for a product, from the initial stage to the mature stage.
After determining its pricing objectives, what is the next logical step a company should take in setting its pricing policy ?
The practice of selling below cost, with an intention to destroying the competitor is referred to as :
