Ch 4 The Marketing Mix: PRICE

What is not part of the marketing mix (the 4Ps)?

• Product
• Person
• Price
• Promotion

Business need to consider 3 factors before deciding the price of their products.

Which of the following is NOT one of the 3 factors of pricing? TB Pg78

• Customers' willingness to pay

• Competitors' prices

• Costs of production

• Customers' prices

Different businesses have different names for the price of their products:

Eg. Hotel rooms: Room rates

What about for Airlines on their plane tickets?

• Travel price

• Airfares

• Flight rates

Business need to consider the COSTS of making the product before deciding on the price to sell to customers.

Which of the following are COSTS of the product?

• materials costs

• staff salaries

• rental costs

• promotion expenses

The cost of producing a wallet is $10. Customers are willing to pay $20 for this wallet.

The business should price the wallet at ________ .

• $8

• $10

• $15

• $20

Product-line pricing involves setting different prices for different v (a)   of the same product.

E.g. in airline seats, there are business class, premium class and economy class seats.

Product-bundle pricing involves pricing a few r (a)   products as a bundle and offering it at a reduced price.

E.g.a restaurant offers a set meals that come with a salad or soup, a main course, a dessert and a drink.

Optional-product pricing involves setting the prices of o (a)   products along with the main product.

E.g. bubble tea shop offer customers the choice to add different toppings at additional charge.

Odd-even pricing involves setting the prices just b (a)   an even amount. E.g setting hotel room rate at $299 instead of $300.

Travellers who are on free and easy packages may opt to pay extra for guided tours, additional meals or hotel upgrades, whereas travellers on budget may not opt for the additional items.

Which pricing technique is this?

• Odd-Even Pricing

• Optional-Product Pricing

• Product-Bundle Pricing

• Discount Pricing