Even though it is suggested that high prices seem to make certain products more desirable, consumers that fall in this category have their own perception of quality and make decisions based upon their own judgement. But… Webster’s 2000 Definition of Inflation 73:3, September, 2005, Guiltnan, J.P., "The Price Bundling of Services,", Dean, J., "Pricing Policies for New Products,". In reality, selling is something altogether different. Historically, price has been the major factor affecting buyer choice. It may determine very much of a firm’s market share and its profitability. STRATEGIC MARKETING AND ITS DEFINITIONS Although most authors speak about some parts of Strategic Marketing, here is included a list of definitions of the term. Price discrimination is also known as variable pricing or differential pricing. This approach is widely used in situations where customer switching costs are relatively high such as in home loans and financial investments. This approach which is often used in the pricing of high technology products and services, is based on the insight that manufacturers learn to trim production costs over time in a phenomenon known as experience effects. Privacy policy | Impressum, We use cookies to improve your experience. A company with a high dividend yield pays a substantial share of its profits in the form of dividends. The table and the definitions have been ordered by year of publication. Margin of safety is an investing principle that involves only procuring a security when its market price is substantially less than its intrinsic value. The price/quality relationship comprises consumers' perceptions of value. All other elements, in fact, represent costs: the product must be developed and produced, the place means facility and transportation costs, and promotion is costly anyway. A case study by Jerry Bernstein and David Macias, How To Price and Sell Your Software Product, https://en.wikipedia.org/w/index.php?title=Pricing&oldid=993805047, Creative Commons Attribution-ShareAlike License, the financial goals of the company (i.e. Rao and Kartono carried out a cross-cultural study to identify the pricing strategies and tactics that are most widely used. Vigneron, F., & Johnson, W., L. (1999). While the actual price of goods or services may vary in response to different conditions, the broad approach to pricing (i.e., the pricing strategy) remains a constant for the planning outlook period which is typically 3–5 years, but in some industries may be a longer period of 7–10 years. Contingency pricing is widely used in professional services such as legal services and consultancy services. This definition includes some of the basic economics of inflation and would seem to indicate that inflation is not defined as the increase in prices but as the increase in the supply of money that causes the increase in prices i.e. Martin, P., "Be alert and informed and you may pay less," The Age [newspaper], 16 January 2013,