Strategic Management: Formulation and Implementation

Adapting The Price

Companies adapt the price to varying conditions in the marketplace. There are the following price adaption strategies:

Geographical pricing
where the company decides how to price to distant customers.
Price discounts and allowance
where the company establishes cash discounts, quantity discounts, functional discounts, seasonal discounts, and allowances.
Promotional pricing
where the company decides on loss-leader pricing, special-event pricing, cash pricing, low-interest financing, and psychological discounting.
Discriminatory pricing
where the company establishes different prices for different customer segments, product forms, brand images, places, and times.
Product-mix pricing
where company decides on the price zones for several products in a product line and on the pricing of optional features, captive products, byproducts, and product bundles.