PRINCIPLES OF MARKETING

PRICING STRATEGIES:
ADDITIONAL
CONSIDERATIONS
THVY
Table of L.O 4. Price changes.

contents L.O 5. Public Policy and Pricing

Initiating Price
Changes
There are different implications:
Initiating price cuts
Initiating price increases
Buyers and competitors'
reaction

Customers' reactions to price

adjustments are influenced by the
significance that the price change has
for them.
Competitors' reactions are based on
either a predetermined response
policy or a thorough examination of
each case.

Example: Gasoline prices increase

Responding to a competitor’s price
changes.

Reduce its Raise the Improve Launch a

price perceived quality and low-price
value increase “fighter
price brand”
 Public Policy and
Pricing
Prices within the Channel Levels
Price-fixing
Predatory pricing,

Prices across the Channel Levels

Retail price maintenance
Discriminatory pricing
Deceptive pricingvn