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Pricing Strategy

Part 1. Marketing Strategy

  1. R. Venkatesh

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem01050

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Venkatesh, R. 2010. Pricing Strategy. Wiley International Encyclopedia of Marketing. 1.

Author Information

  1. University of Pittsburgh, Pittsburgh, PA, USA

Publication History

  1. Published Online: 15 DEC 2010

Abstract

Pricing is that element of a firm's marketing mix focused on generating value to the firm in the form of revenues. This article takes a broad yet introductory look at pricing strategy. Starting with guidelines on how to set the initial price of a product, the article moves on to the discussion of (i) how the price should be varied over the product's life cycle, (ii) why and how prices should be varied across segments of the market, (iii) how to understand, preempt, or respond to competitors' price changes, and (iv) how to price a portfolio of complements or substitutes. The pricing opportunities and challenges arising out of the Internet are briefly discussed. Pricing illustrations and strategic implications are provided throughout. The article concludes with a possible road map for exploring the domain of pricing in greater depth.

Keywords:

  • value pricing;
  • price discrimination;
  • price competition;
  • Internet