The idea of a variable pricing policy, Marketing Management

Assignment Help:

Explain, with examples, the idea of a variable pricing policy.

Variable pricing includes adjusting prices to increase demand in off-peak periods in the hope of stimulating demand and generating revenue. It is based upon the idea of marginal costing recognising that set costs also have to be covered in off-peak times and any contribution is acceptable as long as variable costs are covered. (Potential variable pricing could also contain charging a premium price during peak periods in order to discourage demand but this is not such a common practice).

Examples of variable pricing include:

  • off peak rail travel
  • matinee (afternoon) prices for movie theatres;
  • out of holiday periods (off-season) rates for hotels;
  • weekend rates for telephone services;
  • mid-week rates for hotel bookings;

 


Related Discussions:- The idea of a variable pricing policy

Primary grouping of direct marketing, Primary grouping of direct marketing ...

Primary grouping of direct marketing 4Cs framework  signifies the key characteristics and shows relative effectiveness of the tools of promotion across various different charac

What is brand personality, What is Brand Personality? Brand Personali...

What is Brand Personality? Brand Personality: In totality brands comprises more meaning and significance than tangible or perceivable product some to give. It is a highly

Test Marketing, What is test marketing and various approaches followed by F...

What is test marketing and various approaches followed by FMCG companies

Differentiating between Services and Goods, Differentiate between Services ...

Differentiate between Services and Goods and explain the areas in which the attributes of services create needs in the marketing mix?

Major decisions in sales promotion, Major decisions in sales promotion: in...

Major decisions in sales promotion: in using sales promotion a company must establish its objectives select the tools develop the program pretest the program implement and control

What are personal factors to find consumer behaviour, What are the personal...

What are the personal factors to determine the consumer behaviour? Personal Factors: A consumer’s decisions are also influenced by his personal characteristics with age,

Group-based assignment, I need help in answering questions 4 a & 4b. Q4a ...

I need help in answering questions 4 a & 4b. Q4a : 400 words Q4b :400 words Please provide 3 references, (APA format) My TB is Marketing Management by Philip Kotler & Kevin Kell

Safety, explain right to safety

explain right to safety

What are levels in internal marketing, What are levels in internal marketin...

What are levels in internal marketing? Internal marketing should take place at two levels. Initial level, the various marketing functions are sales force, customer service, a

Sales management, You work as a Field Sales Representative for a telecommun...

You work as a Field Sales Representative for a telecommunications services company named Clear Communications. The Managing Director (MD) needs to appoint someone for the post of F

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd