The final price must take into account that brand’s quality and advertising relative to the competition.
Conversely, brands with low quality and low advertising charged the lowest prices.
Later stages = maturity stage and decline stage
These findings suggest that price is not as important as quality and other benefits in the market offering.
The price must be consistent with company pricing policies.
Airlines charge those who change their reservations on discount tickets.
With consumers resisting higher prices, companies are trying to figure out how to increase revenue without really raising prices.
The telecommunication industry has been aggressive at adding fees for setup, change-of-service, service termination, directory assistance, regulatory assessment, number portability, and cable hookup and equipment, costing consumers billions of dollars.
Many argue that it makes sense to chare a premium for added services that cost more to provide, rather than charge all customers the same amount regardless of whether or not they use the extra service.
The aim to ensure that salespeople quote prices that are reasonable to customers and profitable to company.
Dell Computer has developed innovative pricing techniques.
The company instituted this flexible pricing model in 2001 to maximize its margins during the economic slowdown.
Dell managers get cost information from suppliers, which they then combine with knowledge about profit targets, delivery dates, and competition to set prices for business segments.
When Columbia balked, Baxter offered to guarantee the savings; if they were not realized, Baxter would write a check for the difference.
Baxter got the order!
