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Pricing Strategy : It is a strategic tool that organizations use to differentiate their products from competitors and thereby gain the competitive edge to capture the market.
Price ~ Quality
In the absence of other forms of communication from the company, price becomes the sole decisive factor in selection of a service High risk services customers associate price with service assurance eg. ?
Pricing Structures
In oligopolies where there are few large service providers : Airlines Price signaling Going-rate Pricing
Price Signaling
Found in markets where there are a number of competitors. If any one company offers a lower cost advantage others immediately match the price. Eg. Airlines. In this type of pricing strategy the charges offered are the ones that are prevalent in the market for the same type of service. Eg.Tourist bus services, Car hires etc.
Perceived Value
a. Value is low Price. Eg.? b. Value is what I want in a service. Eg. ? c. Value is the quality I get for that price. Eg.? d. Value is all that I get for all that I give
Price Wars
Price wars are frequent in industries where Cost differentiation opportunities exists Capital is intensive and products are homogeneous egs.?
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