Pricing Adjustment Strategies?

Companies usually adjust their basic prices to account for various customer differences and changing situation .Here, we examine the seven price adjustments strategy summarized in
Discount & Allowances Pricing
Segmented Pricing
Psychological Pricind
Promotional Pricing
Geographical Pricing
Dynamic Pricing &
International Pricing
Discount & Allowance Pricing
Most companies adjust their basic price to reward customers for certain response such as early payments of biils,volume purchase and of season buying.These price adjustment called discount and allowances can tkae many forms.
The many forms of discount include a
Cash Discount :a price reduction to buyers who pay their bills promptly.
Quantity Discount : a quantity discount is a price reduction to buyers who buy large volumes.Such discounts provide an incentive to the customer to buy more from one given seller rather than from different sources.
Functional Discount :A functional Discount  is offered by the seller to trade channel member who perform certain function such a s selling storing record keeping.

Seasonal Discount:a seasonal  discount is a price reduction to buyer who buy merchandise or service out of season.

Allowances are another type of reduction from the list price.It is of two type

Promotional allowance

Trade in allowance

Segmented Pricing

Selling a product or service at two or more prices where the difference in prices is based on differences in cost ..Segmented pricing take many forms

Customer Segmented Pricing

Product Forming Pricing 

Location Pricing

Time Pricing

For segmented pricing to be an effective strategy certain condition must exist.The market must be segmentable and the segments must show different degree of demand.The cost of segmenting and watching the market cannot exceed the extra revenue obtain from the price difference.Ofsourse, the segmented pricing must also be legal...