1. 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

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

3. 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

4. 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

5. 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

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

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

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

9. Three Basic Marketing Price Structures and Challenges for Services

10. 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