Pricing involves carefully considering various factors in order to determine a price that will maximize a company’s profits over the long term. This includes factors such as supply and demand, customer behavior, competition, and industry standards and regulations. The price of a product or service can have a significant impact on a company’s profitability and overall brand value. The following are some common terms in pricing including economics, strategy and behavioral considerations.
Customer Behavior
Cognitive and emotional factors in pricing.
- Bargaining Power
- Price Sensitivity
- Sticky Prices
- Willingness To Pay
Pricing Models
Structures and methods of pricing.
- Customary Pricing
- Flat Pricing
- Market Price
- Premium Pricing
- Price Optimization
- Price Points
- Price Promotion
- À La Carte
Pricing Strategies
Common pricing strategies.
- Algorithmic Pricing
- Decoy Effect
- Dynamic Pricing
- Everyday Low Price
- High-Low Pricing
- Loss Leader
- Price Discrimination
- Price Leadership
- Price Skimming
- Revenue Management
- Sales Promotion
Pricing Economics
The basic forces of pricing driven by supply, demand, consumer perceptions and competitive behavior.
- Commoditization
- Equilibrium
- Inferior Good
- Marginal Utility
- Market Value
- Pricing Power
- Snob Effect
- Superior Good
- Value
- Veblen Goods
Competition & Pricing
The effect of competition on prices.
- Benchmark Price
- Commodity
- Competitive Advantage
- Competitive Parity
- Monopoly
- Perfect Competition
- Predatory Pricing
- Price Competition
- Price Umbrella
- Price War
Compliance & Ethics
Pricing related regulations and ethics.
- Price Fixing
- Price Gouging
- Sale Above Advertised Price
