Price Changes
Solutions
Reduce price to match competition
Maintain price but raise the perceived value through communications
Improve quality and increase price
Launch a lower-price “fighting” brand
Responding to Price Changes
Public Policy and Pricing
Price fixing: Sellers must set prices without talking to competitors
Predatory pricing: Selling below cost with the intention of punishing a competitor or gaining higher long-term profits by putting competitors out of business
Pricing Within Channel Levels
Public Policy and Pricing
Retail (resale) price maintenance is when a manufacturer requires a dealer to charge a specific retail price for its products
Pricing Across Channel Levels
Public Policy and Pricing
Deceptive pricing occurs when a seller states prices or price savings that mislead consumers or are not actually available to consumers
Scanner fraud failure of the seller to enter current or sale prices into the computer system
Price confusion results when firms employ pricing methods that make it difficult for consumers to understand what price they are really paying
Pricing Across Channel Levels