Chapter 16

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Table of Contents

Pricing

Objectives for Chapter 16: Pricing of Services

Role of Pricing in Services

Figure 16-2 What Do Customers Know about the Prices of Services?

Reasons Why --- Customers Lack Accurate Reference Price

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Cost Based Pricing

Examples and Problems

Cost Analysis

Competition Based Pricing

Problems and Examples

Demand Based Pricing

Examples of Demand Pricing--- Value is Low Price

Examples of Demand Pricing--- Value is Everything I Want

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Conditions for Market Segmentation Pricing

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Price Framing

Price Bundling

Complementary Pricing

Results-based Pricing

Multiple-Use Discounts

Meeting Objectives with Multiple-Use Discounts

Problems with Demand Pricing

Price Increases