Price Planning A Price Price Planning Represents the value of a good or service for both the seller and the buyer Price Planning Systematic decision making by an organization regarding all aspects of pricing

Factors Affecting Pricing Decisions Total Effects on Price Decisions Consumers Competitors Cost Channel Members Government Total Effects on Price Decisions

Pricing Services 12/1/2017 Price is influenced by the nature of the service involved. The larger the market share, the higher the price that can be charged. Managing off-peak demand makes pricing services difficult. Bundling services into a single package and price is a common strategy. 12/1/2017 Unit IV - Services Marketing - Mr.K.Mohan Kumar

Wait Period for an Appointment Pricing Quiz Which dentist would you choose for a filling in your tooth? Dentist Cost for Filling Distance to Dentist Wait Period for an Appointment Time in Waiting Room Anesthesia A $50 15 miles 3 Weeks 1.5 hour None B $75 1 Week .5 hour Novocain C $125 3 miles 1 hour D $200 No wait Nitrous Oxide & Novocain

Customer Often Lack of Knowledge of Service Prices Customers often lack reference prices for service Service variability limits knowledge Providers are unwilling to estimate prices Individual customer needs vary Collection of price information by customers is difficult Prices are not visible

The Role of Non-monetary Price Time costs Search costs Convenience costs Psychological costs Do you trade time for money?

Price as an Indicator of Service Quality Can price attract some customers?

Price as an Indicator of Service Quality Infers High Quality Service Infers Low Quality Service

Three Basic Marketing Price Structures and Challenges for Services

A Customer-Focused Approach to The Pricing Process Understand Customer Value Determine Demand based on Competition and Offering Estimate Cost, Revenues Establish a Pricing Structure and Level Set Final Price