Ritzky Karina M.R. Brahmana SE.,MA
Breadth
• Number of product lines
Depth
• Number of categories
within a product line
Satisfy the
changing
needs of
consumers
Benefits
of new
products
Diversify
firm’s risk
Add value
to the firm
•
•
•
Cost-base pricing
methods start
with cost
All costs
calculated on a
per unit basis
Assumes costs
don’t vary for
different levels of
production
A. creates
greater improvement value.
B. is less likely to result in price fixing.
C. has greater influence on reference prices.
D. results in higher profit margins.
E. is relatively simple.
 Set
prices to signal
information of how
product compares
with competitors
 Premium pricing
Zillow Website
 Setting
prices that
focus on the
overall value of
the product
 Consumer
perceptions
Mercedes-Benz Commercial
Nostalgia  souvenirs are reminders of
the places people have traveled
Prestige  buying local art allows
shopper to show appreciation for
local workmanship & add to their
personal collection
Functionality  convinience and price of
items may vary depending on vacation
destinations
Gifts  shopper buy gifts for family
and friends
Altruistic reasons  shopper may buy items
that benefit people and or places at the
destination
Move Faster, spend
less time looking
Look at price tags less often
and can be more easily
upgraded to a more
expensive item
Get a thrill from the
experience of paying
Hate asking for directions
Spend more money
when shopping with
other woman
Are More demanding of the
shopping environment
--Must
have easy to read signs
--See a lot more black,
white&red, ad a lot less of other
colors
Need Brightly lit
stores
If stores are not child friendly, parents will be
deterred to enter:
Make merchandise reachable
Childproff the store
Be able to divert the
attention of a restless child
Design a good area for
children