Task:
Mix and match the description of the pricing strategy with the marketer scenario provided. Matching:
1: Jim's Auto Repair has been in business for 35 years. Known for his "no nonsense" approach and honest recommendations, he has developed a loyal following of customers who KNOW that when Jim says "you need a new alternator," the recommendation is solid and the price is reasonable for the attention and service provided
2: Sam does landscaping. He does great work and is well-known within the Town of Elmville for quality landscaping. When he determines his overall costs, he adds 35 percent to those costs to determine what he will charge the customer.
3: William's Hardware Store is THE place to go for expert opinion on anything relative to home repairs, etc. Because no other hardware store is within six miles, they can charge a higher price for their products. When they occassionally have a sale on a product, the price is below that of even the big retailers, e.g., a Wal-Mart.
4: Were Microsoft to announce a new absolutely hack-proof operating system called SECURE, it would charge a premium price, as it has no competition.
5: Sony has just introduced the first wristwatch that is also a cell phone. Sleek and attractive, it also contains a stylus that allows you to send email. To gain market share quickly, Sony decides to price this product to be very attractive to its target market.
- Perceived Value Pricing
- High-Low Pricing
- Markup Pricing
- Market Skimming Pricing
- Marketing Penetration Pricing