1. Pricing of services

2. Three Key Ways that Service Prices Are Different for Consumers
Approaches to Pricing Services
Pricing Strategies that Link to the Four Value Definitions
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3. Three Key Ways that Service Prices Are Different for Consumers
Customer knowledge of service prices
The role of non-monetary costs
Price as an indicator of service quality

4. Pricing Quiz What do you know about the prices of these services?
A Life Insurance Policy
One year subscription in a gym
An ayurvedic spa
A regular dental check-up
A hotel room in Nainital (Lake view, AC room)
An airline ticket from Delhi-Mumbai in December, 2014

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
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6. The Role of Nonmonetary Costs
Time costs
Search costs
Convenience costs
Psychological costs
Do you trade time for money?
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7. Price as an Indicator of Service Quality
Infers High Quality Service
Infers Low Quality Service
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8. Approaches to Pricing Services
Cost-based
a company determines expenses from raw materials and labour, adds amounts or percentages for overhead and profit, and thereby arrives at the price
Competition-based
Focuses on prices charged by other firms in the same industry
Demand-based
Involves setting prices consistent with customer perceptions of value

9. Three Basic Marketing Price Structures and Challenges for Services
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10. Four Customer Definitions of Value
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11. Pricing Strategies When the Customer Defines Value as Low Price
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12. Pricing Strategies When the Customer Defines Value as Everything Wanted in a Service
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13. Pricing Strategies When the Customer Defines Value as Quality for the Price Paid
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14. Pricing Strategies When the Customer Defines Value as All that Is Received for All that Is Given
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15. Summary of Service Pricing Strategies for Four Customer Definitions of Value
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