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.