1. 14-1 CHAPTER STRATEGIC PRICING METHODS 14 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 14-2 Pricing Strategies

3. 14-3 1. What are the three different strategies for setting pricing? 2. How can you use value-based strategies for setting prices? Check Yourself

4. 14-4 Pricing Strategies Everyday low pricing (EDLP) High/Low Pricing

5. 14-5 vs.. Everyday low pricing (EDLP) High/low pricing Everyday Low Pricing vs.. High/Low Pricing Create value in different waysEDLP saves search costs of finding lowest overall pricesHigh/low provides the thrill of the chase for the lowest price Photodisc Collection/Getty Images ©Lars A Niki

6. 14-6 Wine ranges in price from under $5 a bottle to over $100K a bottle. How do you know which to choose? The Price-Quality Relationship Most inexperienced consumers use price as an indicator of quality Price becomes crucial when consumers have little knowledge about certain products/brands Steve Mason/Getty Images

7. 14-7 Pricing strategy Pricing tactics Pricing Tactics Digital Vision/Getty Images

8. 14-8 Pricing Tactics Aimed at Consumers Mark downs Quantity Discounts Seasonal Discounts CouponsRebatesLeasing Price Bundling Leader Pricing

9. 14-9 Business to Business Pricing Tactics and Discounts Seasonal discounts Cash discounts Vendor Allowances Quantity discounts Uniform delivered vs. Zone pricing

10. 14-10 1. What are some consumer-oriented pricing tactics? 2. What are some business-oriented pricing tactics? Check Yourself

11. 14-11 Legal Aspects and Ethics of Pricing Deceptive or illegal price advertising Predatory pricing Price discrimination Price fixing Legal Aspects and Ethics of Pricing