Talk:Pricing strategies
 | This article is rated Start-class on Wikipedia's content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
Down playing
editWhat do you call down playing the price? Equity pricing? There is another name... — Preceding unsigned comment added by 130.195.86.38 (talk • contribs) 20:25, 12 June 2006
Are you talking about the discounting strategy that companies often use to boost their gross revenue? Or are you talking about the cost leadership strategy where companies aim to sell at the lowest cost whether it be through mass production or technological break throughs? Charley.79 (talk) 06:23, 29 October 2020 (UTC)
Hehe, this article got the Apprentice bump
editIt was seen being browsed. --193.92.61.249 (talk) 16:53, 11 December 2010 (UTC)
Psychological pricing vs. Odd pricing
editThe explanations of these two terms sound synonymous. Can they be merged? -79.180.253.9 (talk) 16:53, 7 November 2012 (UTC)
Merging is possible since the reason behind why companies undertake "odd pricing" is because of "psychological" factors. However, could it be worthwhile to change Odd pricing to Odd-Even pricing? That's the technical term for it and multiple textbooks refer to it as such. Additionally, both odd and even pricing is used. Companies following a cost leadership strategy will often use odd pricing to portray the image that they are offering the cheapest price. On the other hand, upscale retailers will choose to use even pricing to portray a more high-end image.[1] Charley.79 (talk) 06:46, 29 October 2020 (UTC)
Should this be added to the list?
edithttp://en.wiki.x.io/wiki/Decoy_effect — Preceding unsigned comment added by 104.174.225.137 (talk) 23:13, 8 April 2015 (UTC)
Marginal-cost pricing
editMarginal cost pricing is a hypothetical pricing model, do you guys think we should keep it here? As far as my understanding goes, it doesn't exist in practice, though it is theoretically necessary for some aspects of the current paradigm of neo-classical economics. What do you guys think? I think we should remove it, personally, but that might be a radical view. Thanks. MHP Huck (talk) 00:24, 24 April 2015 (UTC)
Dr. Takeuchi's comment on this article
editDr. Takeuchi has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
This article is written from marketing point of view. I believe it is possible to write this from the viewpoint of Industrial Organization.
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
We believe Dr. Takeuchi has expertise on the topic of this article, since he has published relevant scholarly research:
- Reference : Takehiro Usui & Kenji Takeuchi, 2012. "Evaluating Unit-Based Pricing Of Residential Solid Waste: A Panel Data Analysis," Discussion Papers 1203, Graduate School of Economics, Kobe University.
Pricing strategies vs pricing tactics
editThis article appears to confuse pricing tactics with pricing strategies. Although the literature identifies different pricing strategies (depending on which book you consult), it is possible to identify 6 distinct strategic approaches to pricing:
- Operations-oriented pricing: where the objective is to optimise productive capacity, to achieve operational efficiencies or to match supply and demand through varying prices. In some cases, prices might be set to de-market.[2]
- Revenue-oriented pricing: (also known as profit-oriented pricing or cost-based pricing) - where the marketer seeks to maximise the profits (i.e., the surplus income over costs) or simply to cover costs and break even.[2] For example, dynamic pricing (also known as yield management) is a form of revenue oriented pricing.
- Customer-oriented pricing: where the objective is to maximise the number of customers; encourage cross-selling opportunities or to recognise different levels in the customer's ability to pay.[2]
- Value-based pricing: (also known as image-based pricing) occurs where the company uses prices to signal market value or associates price with the desired value position in the mind of the buyer. The aim of value-based pricing is to reinforce the overall positioning strategy e.g. premium pricing posture to pursue or maintain a luxury image.[3]
- Relationship-oriented pricing: where the marketer sets prices in order to build or maintain relationships with existing or potential customers.[4]
- Socially-oriented pricing: Where the objective is to encourage or discourage specific social attitudes and behaviours. e.g. high tariffs on tobacco to discourage smoking.[5]
All the others such as loss leadering, high-low pricing etc are pricing tactics.
- ^ Law, Jonathon (2009). A Dictionary of Business and Management (Sixth ed.). Oxford University Press. ISBN 9780191726545. Retrieved 29/10/2020.
{{cite book}}: Check date values in:|accessdate=(help) - ^ a b c Dibb, S., Simkin, L., Pride, W.C. and Ferrell, O.C.,Marketing: Concepts and Strategies, Cengage, 2013, Chapter 12
- ^ Nagle, T., Hogan, J. and Zale, J., The Strategy and Tactics of Pricing: A Guide to Growing More Profitably, Oxon, Routledge, 2016, p. 1 and 6; Brennan, R., Canning,L. and McDowell, R., Business-to-Business Marketing, 2nd ed., London, Sage, 2011, p.331
- ^ Neumeier, M., The Brand Flip: Why customers now run companies and how to profit from it (Voices That Matter),2008, p. 55
- ^ Irvin, G., Modern Cost-Benefit Methods, Macmillan, 1978, pp 137-160
Premium decoy pricing
editThe text mentions 'Subsequently pork becomes cheaper', but shouldn't this be 'Subsequently pork is perceived as cheaper', as the price of pork isn't necessarily changed and the strategy/tactic depends on customer's perception in comparison to the high beef price? 84.30.30.54 (talk) 12:58, 7 December 2020 (UTC)