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Service and Relationship Marketing Module:2 Setting  Prices  and Implementing  Revenue Management SRM/M1/SS
Overview ,[object Object],[object Object],[object Object],[object Object],[object Object]
Effective Pricing is Central to Financial Success
What Makes Service Pricing Strategy Different and Difficult? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Objectives for Pricing of Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Pricing Strategy  As Represented by the Pricing Tripod
The Pricing Tripod
Floor and Ceiling of Price
Three Main Approaches to Pricing
Cost-Based Pricing: Traditional vs.  Activity-Based Costing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value-Based Pricing: Understanding Net Value  ,[object Object],[object Object],[object Object]
Value-Based Pricing: Strategies for Enhancing Net Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Defining Total User Cost Physical Effort Psychological Burdens Sensory  Burdens Incidental Expenses Operating Costs Purchase Time * Includes all five  cost categories Purchase and Service Encounter Costs Search Costs* Post Purchase Costs* Necessary  Follow-up Problem Solving Money
Competition-Based Pricing
Competitive-Based Pricing
Revenue Management: What it is and How it works
Maximizing Revenue from  Available Capacity at a Given Time ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
Price Elasticity
Key Categories of Rate Fences:  Physical (Product-Related) Fences Product-Related Fences
Key Categories of Rate Fences:  Non Physical Fences Transaction Characteristics
Consumption Characteristics
Buyer Characteristics
Relating Price Buckets and Fences to Demand Curve
Ethical Concerns in Service Pricing
Ethical Concerns in Pricing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Designing Fairness into Revenue Management ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Putting Service  Pricing into Practice
Pricing Issues:  Putting Strategy into Practice
Putting Service Pricing into Practice  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1. How much to charge? 2. What basis for pricing?
Putting Service Pricing into Practice  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],3. Who should collect payment? 4. Where should payment be made? 5. When should payment be made?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Putting Service Pricing into Practice  6. How should payment be made? 7. How to communicate prices ?
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Service Marketing

Editor's Notes

  1. Service and Relationship Marketing