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Chapter Summary:

The primary emphasis in this chapter is to look at pricing as a five-step process. The process includes examination of: company objectives, approaches to setting an initial price, different types of price adjustments marketers make before settling on a final selling price, and payment options. Finally, we discuss the issues of bid and auction pricing and how these affect pricing strategy.

Key Issues:

• Steps in the Price Setting Process
• Step 1: Examine Objectives
• Step 2: Determine an Initial Price
• Step 3: Set Standard Price Adjustments
• Step 4: Determine Promotional Price Adjustments
• Step 5: State Payment Options
• Other Pricing Methods

Links to Cited References:

(note: Some links may no longer be active, if this is the case check Accessing Marketing Stories for hints on accessing.)

1. Bergstein, B. "Software Helps Retailers Make Sure the Price is Right," USA Today, April 27, 2007. http://www.usatoday.com/tech/products/software/2007-04-26-right-price_N.htm
2. Caterinicchia, D., "Delta CEO: 15-20% Fare Hike Needed Just to Break Even," USA Today, April 22, 2008. http://www.usatoday.com/travel/flights/2008-04-22-fare-hike-proposal_N.htm
3. "Stations Hope You Fill Up With More Than Gas," MSNBC, April 1, 2008. http://www.msnbc.msn.com/id/23904590/
4. Holliday, H., "Local Retailers React to Oklahoma's Unfair Sales Act," KTEN, January 19, 2007. http://www.kten.com/Global/story.asp?S=5728973
5. Ramasatry, A., "Is It Legal for Different Customers to Receive Different, Customized Sales Offers? The Example of Alaska Airlines, and the Likely Regulatory Response," FindLaw, April 1, 2008. http://writ.news.findlaw.com/ramasastry/20080401.html
6. Chafkin, M., "Reverse Auctions," Inc, May 2007. http://www.inc.com/magazine/20070501/salesmarketing-pricing.html
7. Holahan, C., "Auctions on eBay: A Dying Breed," BusinessWeek, June 3, 2008. http://www.businessweek.com/technology/content/jun2008/tc2008062_112762.htm