Sports and Entertainment Marketing
Angus Billington and Jishnu Puriella
Prestige Pricing is a pricing tactic to mark up items that convey potential "higher standing". For example, Beats by Dr. Dre aren't known for their quality, but are priced as one of the higher pair of headphones because of their popularity, and their brand name.
Odd Pricing is another strategy used by many corporations by lowering the price of a product by only a few cents to make the product seem more appealing. An example of this would be pricing an expensive watch for $299.97 to potentially appeal to more consumers due to the illusion that the product is priced in the $200 range instead of the 300$ range.
Even pricing, which is very similar to odd pricing, involves lowering the price of a product to end in a whole number. For example, the iPad Mini is priced at $329 instead of $329.99.
Skimming Pricing involves selling a product at a higher price, but then is marked off as the demand of the product increases. An example of this would be a popular video game, or a pair of demanded shoes.
Penetration pricing is the opposite of skimming pricing by having an initially lower price. This is used to attract new customers to a specific product or brand. For example, Honda or Toyota sells certain vehicles at a fairly low price to get customers hooked on their brand.
Price Lining is having different prices with items in the same product line. This is done to show the difference in price for each level of quality in the line. Example: Gas
Bundle pricing revolves around selling multiple items together at one fixed price to allow the consumer to believe they are saving by buying in bulk than one by one. Sony sold their hit game Little Big Planet with a Controller together.
Loss leader pricing is when a company sells a product or service below the cost to make the product, or to make the service possible to potentially influence the consumer to stay loyal to the vendor to buy higher priced items and services. Example: Walmart selling dvds for next to nothing
Yield Management Pricing
Yield Management Pricing is when is when a company constantly changes the cost of a product based on their demand, success, and competition. For example, airlines change the cost of their flights depending on how popular the destination is and how other airlines are charging for their flights respectively.