What is brand loyalty? Customers are satisfied that a certain brand meets their needs all the time, they will develop brand loyalty. They are willing to pay a higher price for their preferred brand..
Services and benefits offered to customers in addition to the product
Fast and reliable delivery
Financing and hire purchase
After sales service
Product and technical information
What is Pricing? Refers to the Price of product. It affects the revenue of a business. When we price too high, customers may not buy. We price too low, we may not earn enough revenue.
How to Price? Cost: refer to all the expenses a business pays to buy or produce its product.
How to Price? Competitor’s prices: We set our prices based on our competitors’ pricing. We may price our product higher if they are unique.
How to Price? Customer’s willingness to pay: How much its target customers are willing to pay.
Pricing techniques Product Line Pricing – setting different prices for different version of the same product. Airline tickets: economy class, Business class and first class
Pricing techniques Optional product pricing – Involves setting prices of optional or accessory along with the main product. - Pizza restaurant offer customers the choice adding extra topping with extra cost.
Pricing techniques Product bundle pricing – pricing a few items of related products in a bundle. Example: Set meals – burger + drink + fries
Pricing techniques Promotional Pricing – involve temporarily pricing product below the listed prices. Example: Special discounts are offered during festive seasons like Christmas and New Year
Pricing techniques Odd-even pricing – Involves setting prices at value just below an even amount. Example: instead of $20, the price is set at $19.95