Chapter 17
Chapter 17
Objectives To Describe the Role of Pricing To EXamine the Impact of Internal and external forces on Pricing To Present A Retail Pricing Framework
• To Describe the Role of Pricing • To Examine the Impact of Internal and External Forces on Pricing • To Present A Retail Pricing Framework
Pricing Options Discount orientation At-The-Market Orientation Upscale orientation
• Discount Orientation • At-The-Market Orientation • Upscale Orientation
Factors Affecting Retail Price Strategy Government Manufacturers Current and Consumers (federal, state, wholesalers, and potential and local) other suppliers competition Total effect on Pricing Strategy
Total Effect on Pricing Strategy Government (federal, state, and local) Manufacturers, wholesalers,and other suppliers Consumers Current and potential competition
The Consumer Price Elasticity of Demand Elastic Inelastic Unitary Elasticity Price Sensitivity
• Price Elasticity of Demand – Elastic – Inelastic – Unitary Elasticity • Price Sensitivity
Price Sensitivity by Market Segment Economic consumers Status-Oriented Consumers Assortment-Oriented Consumers Personalizing Consumers Convenience-Oriented Consumers
• Economic Consumers • Status-Oriented Consumers • Assortment-Oriented Consumers • Personalizing Consumers • Convenience-Oriented Consumers
The Governement Federal State Local
• Federal • State • Local
Federal Regulations Horizontal Price Fixing Federal Trade Commission(FTC) Vertical Price Fixing Consumer Goods Pricing Act Price discrimination Robinson-Patman Act
• Horizontal Price Fixing – Federal Trade Commission (FTC) • Vertical Price Fixing – Consumer Goods Pricing Act • Price Discrimination – Robinson-Patman Act
Supplier vs Retailer Perspective Gray Market Goods Price guarantee
• Supplier vs. Retailer Perspective • Gray Market Goods • Price Guarantee
Robinson-Patman Exceptions Products Physically Different Non-Competitors Competition Not Injured Different Supplier Costs Market Conditions Change
• Products Physically Different • Non-Competitors • Competition Not Injured • Different Supplier Costs • Market Conditions Change
