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

Store layout, Store layout The word store layout refers to: How stor...

Store layout The word store layout refers to: How store fixtures and display gondolas are positioned within the store The size of the store fixtures and display gondolas

Case study, how should shoppers'' stop develop its demand forecasts?

how should shoppers'' stop develop its demand forecasts?

What is product strategy development, What is Product Strategy Development?...

What is Product Strategy Development? Product Strategy Development: Based onto corporate goals and strategy. The corporate function for new product is found. The external

psychological or functional motive?, The purchase of the smartphones by th...

The purchase of the smartphones by the netizens has a psychological or functional motive?

Calculate percentage of sales methods, Q. Calculate Percentage of Sales Met...

Q. Calculate Percentage of Sales Methods? The sum to be appropriated to advertising is arrived at by multiplying the worth of past year's sales or projected sales for the budge

Brand policies., what is the importance of branding policies in an organisa...

what is the importance of branding policies in an organisation

What is the meaning of selling concept, What is the meaning of selling conc...

What is the meaning of selling concept? Meaning: Selling concept declares that consumers will not buy adequate of the organization’s products unless the organization unde

How is routinisation facilitated in development of exchange, How is routini...

How is routinisation facilitated in development of exchange system? Routinisation facilitates the development of the exchange system. This leads to standardization of goods and

What is segment marketing, What is Segment Marketing? Segment Marketi...

What is Segment Marketing? Segment Marketing: A segment market comprises a large identifiable group in whole market. Company’s practice segment marketing recognizes which

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