Recap of 8th Nov

We have discussed various pricing method in the class. Some of them are-

1.Product Line Pricing: Companies usually develop product lines rather than single product. For e.g Samsonite offers 20 different collection of bags of all shape and sizes at price which ranges from $50 to $1250. In product line pricing, management must decide on the price steps to set between the various products in a line.

2.Captive Product Pricing: Product which is used along with the main product. E.g Razor-Blade .

3.Optional Product Pricing: The company offers to sell optional or accessory product with their main product. For e.g refrigerator comes with optional ice maker.Pricing these options is a sticky problem.

4.Going rate pricing: According to market forces marketers set the pricing. Consumers pay a pivotal role in deciding the references of a going rate pricing.

5.ByProduct pricing: Producing product and services often generate byproduct. If the byproduct have no value and getting rid of them is costly, this will affect the pricing.

6.Bundle Pricing:Using poduct bundle pricing, product often combine several other products and offer a bundle at a reduced price.