types of pricing

types of pricing

1. ASSIGNMENT 2 S. Bharath II-BBA ‘B’ 18Uu67

2. 2 Price Lining Negotiated Psychological Customary Skimming Penetration Geographical Administered Dual Mark up Kinds of Pricin g

3. 1.Psychological Pricing Many customers use the rice as an indicator of quality. Costs and other factors are important in pricing. 3

4. 2. Customary Pricing Customers expect a particular price to be chargedfor certain products. The prices are fixed to suit local sonditions .

5. 3.Skimming Pricing It involves a high introductory price in the initial stage toskim the cream of demand. Generally the rice moves downward when competition enter into the market field. 5

6. 4 . Peneration Pricing A low price is designed in the initial stage with a view tocapture greater market share. That is if the policy is to capture greater market share, then this is done only b adoption of low prices in the initial stage. 6

7. 7 5. Eographical Pricing The distance between the seller and the buyer is considered in geographic pricing. The majority of the producing center are located in Bombay, Delhi, Calcutta and Madras.

8. 6. Administered Pricing 8 It isdefined as the price resulting from the managerial decision and not on the basis of cost,competition , and etc…

9. 9 7.Dual Pricing Under this pricing, a producer is required compulsorily to sell a part of his production to the government.

10. 10 This method is also known as cost plus pricing.This method is generally adopted by wholesalers and retailers. When they set up the price initially, a certain percentage is added to the cost. 8 . Mark up Pricing

11. 9. Price Lining 11 this method of pricing is generally followed by the retailers than wholesalers. This system CONsists of selecting a limited number of prices.

12. 12 10. Negotiated Pricing It is also know as variable pricing. This price is not fixed The price tobe paid on sale depends uponbargaining .

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