PRICE

ADJUSTMENT
STRATEGIES
BY-Itishree Pattanaik
MBA-2
PRICE-ADJUSTMENT
STRATEGIES
 Price – adjustment strategies refer
to all those strategies which are
applied by an organisation to take
into consideration the differences
among the customers and rapidly
changing environment.
SIX PRICE –ADJUSTMENT
STRATEGIES
 Discount and allowance pricing
 Segmented pricing
 Psychological pricing
 Promotional pricing
 Geographical pricing
 International pricing
DISCOUNT AND ALLOWANCE
PRICING
 Cash discount
 Quantity discount
 Functional discount
 Seasonal discount
 Allowances
SEGMENTED PRICING

 Customer segmented pricing

 Product form pricing
 Location pricing
PSYCHOLOGICAL PRICING

 Psychological pricing is a business

concept supported by the idea that
customers respond better to certain
types of prices and will more likely to
buy items with these prices . Most
often, such prices have end digits of
nine,99 or 95.
PROMOTIONAL PRICING

 Many organisations try to promote

their products by lowering down
the prices of their products below
list price or even cost. Such
promotional pricing helps the
marketers to attract the more
customers in short period of time.
GEOGRAPHICAL PRICING

 Companies also charge different prices from

the customers living in different parts of the
country or world. If the customers are living
in distant areas, Companies have to charge
higher prices to cover the cost of shipment
but this will result in the losing of customers
to competitors . Therefore it becomes
difficult for the company whether to charge
the uniform prices through out the country or
change prices according to the geographical
conditions in which the customers .
INTERNATIONAL PRICING
 Companies that market their product
internationally must decide what prices to charge
in the different countries in which they operate.
In some cases, a company can set a uniform
worldwide price. The price that a company should
charge in a specific country depends on many
factors ,including
 Economic conditions,
 Competitive situations,
 Laws and regulations
 Consumer perceptions and preferences
 Development of wholesaler and retailer system
THANK YOU