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    Pricing: Haider Khan

    Uploaded by

    hamnah lateef
    This document discusses pricing strategies and factors that affect price decisions. It outlines several methods that can be used to estimate customer price responses, including expert judgement, customer surveys, price experiments, and analysis of historical data. Customer surveys involve directly asking customers what price they would be willing to pay for a product and describing the product at different price points to gauge their preferences. Survey results can show the percentage of profitable buyers at various price levels. The document provides an example survey result indicating the percentage of profitable buyers for a burger at prices of Rs. 30, Rs. 50 and Rs. 80. Pricing is affected by factors like competitive environment, customer needs, costs and value measures.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Pricing: Haider Khan

    Uploaded by

    hamnah lateef
    13 views20 pages
    This document discusses pricing strategies and factors that affect price decisions. It outlines several methods that can be used to estimate customer price responses, including expert judgement, customer surveys, price experiments, and analysis of historical data. Customer surveys involve directly asking customers what price they would be willing to pay for a product and describing the product at different price points to gauge their preferences. Survey results can show the percentage of profitable buyers at various price levels. The document provides an example survey result indicating the percentage of profitable buyers for a burger at prices of Rs. 30, Rs. 50 and Rs. 80. Pricing is affected by factors like competitive environment, customer needs, costs and value measures.

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    Pricing

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    This document discusses pricing strategies and factors that affect price decisions. It outlines several methods that can be used to estimate customer price responses, including expert judgement, customer surveys, price experiments, and analysis of historical data. Customer surveys involve directly asking customers what price they would be willing to pay for a product and describing the product at different price points to gauge their preferences. Survey results can show the percentage of profitable buyers at various price levels. The document provides an example survey result indicating the percentage of profitable buyers for a burger at prices of Rs. 30, Rs. 50 and Rs. 80. Pricing is affected by factors like competitive environment, customer needs, costs and value measures.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    13 views20 pages

    Pricing: Haider Khan

    Uploaded by

    hamnah lateef
    This document discusses pricing strategies and factors that affect price decisions. It outlines several methods that can be used to estimate customer price responses, including expert judgement, customer surveys, price experiments, and analysis of historical data. Customer surveys involve directly asking customers what price they would be willing to pay for a product and describing the product at different price points to gauge their preferences. Survey results can show the percentage of profitable buyers at various price levels. The document provides an example survey result indicating the percentage of profitable buyers for a burger at prices of Rs. 30, Rs. 50 and Rs. 80. Pricing is affected by factors like competitive environment, customer needs, costs and value measures.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    PRICING

    Haider Khan
    Credits
     Slides contains a lot of stuff from Power Pricing by
    Dolan.
    Pricing
     How does pricing affect profit?
     How do consumers respond to pricing?
     Which factors affect the price decision and how?
    Price decrease
    Price increase
    Price-response curve
    Factors affecting pricing
    Define
    competitive
    Determine environment
    Determine
    market marginal cost of
    segmentatio competing
    brands
    n

    Determine Price Define


    value and
    customer
    trade off
    needs
    measures

    Determine Determine
    customer’s
    shortlist of purchasing
    brands volume
    Price response estimation
    Methods
     Expert judgement
     Customer surveys
     Price experiments
     Analysis of historical data
    Expert judgement

    Method Limitations/pitfalls

     Develop questionnaire  Internal


     Interview at least 10  Biases
    experts
     Limited scope of
     DISCUSS RESULTS
    understanding the
     Multi-function (Sales,
    market
    Marketing, GM)
     Have a neutral person
    conduct interviews
    Example: Direct customer survey’s result

    Method
     Direct
     What is the likelihood of you buying
    this product for Rs. 25?
     At what price would you
    DEFINITELY buy this product?
     How much would you be willing to
    pay for this product?
     Describe product and offer to sell at
    different price points.
     Preference based inferences
     Conjoint analysis between value and
    price
    Customer survey result example
    Customer survey result example
    Customer survey result example
    Price response of anday waala burger

    Profitable buyers
    60%

    50%

    40%

    30%

    20%

    10%

    0%
    Rs. 30 Rs. 50 Rs. 80

    Profitable buyers
    Pricing
    Mont Blanc Meisterstuck
    Le Grand Ballpoint Pen

    ~ PKR 54,000 ~ PKR 10

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