This document discusses various pricing strategies used by businesses including cost-based pricing, demand-based pricing, and competition-based pricing. It provides details on different types of pricing within each category, such as cost plus pricing, marginal cost pricing, skimming pricing, penetration pricing, premium pricing, discounted pricing, and parity pricing.

1. •Ankita Pujari - 35
•Annuradha Gupta – 13
•Omkar Sansare – 37
•Shambhu kumar - 58
•Vaibhav Jangale - 18

4. I. Cost plus pricing
II. Marginal cost pricing
It includes the cost of ingredients and cost of
operating the business.
Types of cost based pricing

5. I. The selling price is fixed by adding Mark-up or
Margin to its cost.
II. Price=Average variable cost + net profit margin
+ average fixed cost

6. I. Consider Incremental cost of production.
II. It allows flexibility.
III. Particularly relevant in transport where fixed costs may be
relatively high.

7. I. The pricing decision is also depending on
Demand and supply of the commodity.
II. Demand-based pricing is any pricing method
that uses consumer demand - based on
perceived value - as the central element.
Types of Demand based pricing are:
I. Skimming pricing
II. Penetration pricing
III. psychological pricing
IV. Discrimination pricing
V. value-based pricing

8. I. Initially the products will be introduced in a
high price and subsequently settle down for
a lower price.
II. Example: Mobile Phones, Televisions etc..
Most of the electronic items.

9. I. Initially introduced at a lower price and increases its price
as its demand in the market increases.
II. Good to capture new market.
III. Opposite of skimming.
IV. Keep the product out of competition for longer time.
V. Example: DTH Services, Magazines, Mcdonald.

10. I. Used to play on consumer perceptions
II. Classic example – Rs.599 instead of
Rs.600.

11. I. Charging a different
price for the same
good/service in
different markets at
different point of
time.
II. Requires different
price elasticity of
demand in each
market
III.For example:
vegetable vendor and
railway ticket fare in
foreign countries.
Prices for rail travel differ for the same
journey at different times of the day

12. I. Price set in accordance with customer
perceptions and not the sellers cost
II. Examples include status products/
exclusive products.

13. In Competition Based Pricing the price covers costs (cost of raw materials and the
cost of operating the business) and is comparable to the competitor’s price.
I. Premium pricing
II. Discounted Pricing
III.Parity Pricing/going rate pricing
IV.Product Bundling(packaging) pricing
V. Loss Leader pricing.
Types of Competition Based pricing

14. I. Setting the price of a product higher than similar product
II. Is not used where is direct competition
III. Unique product
IV. For example: Rolls Royce and Rolex watches.

15. I. Businesses use Discount pricing to sell low price products in high quantities
II. Frequent use of this strategy may eventually damage your ability
to sell the product at full price.

16. I. Setting price for a product or services using the prevailing market price as
a basis.
II. Going rate pricing is a common practice with homogeneous product with
very little variation from one producer to another, such as
aluminium, steel, Banks, soft drink and petrol.

17. I. Two or more
products bundled
together for a
single price.
II. It saves cost of
spreading
awareness.
III. Useful when the
product demand
starts falling.
IV. Examples: Tourist
agency, Indian
railway, Newspape
rs and soap

18. I. Under this multi product
firms sell one product at
a lower price and
compensate the loss by
other product.
II. One Product cannot be
utilized without the
other product.
III. Example: pen and
ink, printer and
cartridge, photocopier
and toner, etc..