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* * * * * * * * * * * * * * * * * * * * * * * Variable Pricing and Price Discrimination Clearance Markdowns for Fashion Merchandise Coupons Price Bundling McDonald’s Value Meal Multiple-Unit Pricing or Quantity Discount Variable Pricing by Market Segments (Third Degree of Price Discrimination) – Charge different groups different prices Seniors Discounts Kids Menu Zone Pricing (Third Degree of Price Discrimination) – Charge different prices in different stores, markets, regions Set prices based on customer characteristics related to willingness to pay Fashion sensitive customers will pay more so charge higher prices when fashion first introduced – reduce price later in season Price sensitive customers will expend effort to get lower prices – coupons Elderly customers eat earlier and are more price sensitive so offer early bird specials Solution to Problems in Implementing Price Discrimination C. Borland/PhotoLink/Getty Images Leader Pricing Price Lining Odd Pricing Pricing Techniques for Increasing Sales Leader Pricing Certain items are priced lower than normal to increase customers traffic flow and/or boost sales of complementary products Best items: purchased frequently, primarily by price-sensitive shoppers Examples: bread, eggs, milk, disposable diapers Might attract cherry pickers Allan Rosenberg/Cole Group/Getty Images Dennis Gray/Cole Group/Getty Images Ryan McVay/Getty Images Price Lining A limited number of predetermined price points. Ex: $59.99 (good), $89.99 (better), and 129.99 (best) Benefits: Eliminates confusion of many prices Merchandising task is simplified Gives buyers flexibility Can get customers to “trade up(买更高价东西)” Odd Pricing A price that ends in an odd number (.9) $2.99 Assumption: Consumers perceive as $2 without noticing the digits 9 endings signal low prices Retailers believe the practice increases sales, but probably doesn’t Internet and Price Competition The Internet offers unlimited shopping experience Seeking lowest price?
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