What is a differentiated pricing strategy?
a pricing strategy in which a company sets different prices for the same product on the basis of differing customer type, time of purchase, etc; also called Discriminatory Pricing, Flexible Pricing, Multiple Pricing, Variable Pricing. See: One-Price Policy.
What are the 5 levels of strategic pricing?
Finding your Pricing Strategy on the 5 Levels of Pricing…
- Level 1: The Firefighter. Firefighters constantly put themselves in harm’s way, often for little reward.
- Level 3: The Partner.
- Level 4: The Scientist.
- Level 5: The Master.
Should a company differentiate service levels to different customers?
Differentiating between your customers allows you to expand the width and breadth of your services in such a way that you are able to effectively serve a wider group of people.
What are the objectives of the pricing services?
Some of the more common pricing objectives are:
- maximize long-run profit.
- maximize short-run profit.
- increase sales volume (quantity)
- increase monetary sales.
- increase market share.
- obtain a target rate of return on investment (ROI)
- obtain a target rate of return on sales.
How does differentiation effect pricing?
A primary benefit of differentiation is that it can make your brands more inelastic — meaning customers more easily tolerate price increases. The number of available substitutes for a given product has a direct impact on its price elasticity.
What are the 4 types of pricing?
There are 4 Pricing Methods that can help you put a price on what you sell: replacement cost, market comparison, discounted cash flow/net present value, and value comparison.
What is service differentiation strategy?
Service differentiation is the design and delivery of a service to have unique and valuable characteristics relative to other services in the market.
What are the differentiation strategies being used in service marketing?
Your differentiation strategy is the way in which you make your firm stand out from otherwise similar competitors in the marketplace. Usually, it involves highlighting a meaningful difference between you and your competitors. And that difference must be valued by your potential clients.
What is pricing of service in service marketing?
Pricing is a process of fixing the value that a manufacturer will receive in the exchange of services and goods. Pricing method is exercised to adjust the cost of the producer’s offerings suitable to both the manufacturer and the customer.
What is meant by pricing of services?
Pricing a Service Definition: To establish a selling price for a service.