JAIIB PPB Unit 39 - Pricing

Cost Based Pricing
Value Based Pricing
Competition Based Pricing
Group Pricing

1. Mark up Pricing
2. Absorption Cost Pricing
3. Target-return Pricing
4. Marginal Cost Pricing
5. Perceived value pricing
6. Value Pricing
7. Going – Rate Pricing
8. Auction- Type Pricing

English Auctions
Dutch Auctions
Sealed – bid Auctions

Pricing Strategies

1. Geographical Pricing: different locations, different prices, cost of transportation included.
2. Price Discounts and Allowance : Cash Discount, Quantity Discount, Functional Discount, Seasonal Discount
3. Psychological Pricing: To many consumers think that higher priced product to be of better quality. By setting the price in particular range sellers can create an impression about the product belongs to the particular class
4. Promotional Pricing :
5. Discriminatory Pricing: when different prices are changed to different buyers.
6. Product-Mix Pricing :
7. Market-skimming Pricing: Product is initially priced higher, and over a period of time it is reduced to attract more buyers, with a view to ‘skimming’ the revenues layer to layer from the market.
8. Market-penetration Pricing: Setting the price low initially in order to penetrate the market quickly and deeply attracting a large market share.