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

New products development process, New products development process: Id...

New products development process: Idea generation: the development of the new product starts with a generation of new ideas. There may be a number of sources of the ideas gen

What are the important facts of marketing, What are the Important facts of ...

What are the Important facts of marketing Marketing identifies consumers' needs and supplies different goods and services to satisfy those needs most effectively. So businessma

Explain different types of headlines, Q. Explain Different types of Headlin...

Q. Explain Different types of Headlines ? Different Forms of Headlines:- Direct Benefit Headlines Question Headlines Announcement Headlines. Provocative He

Ray ban, how to draw consumer profile of a typical buyer of ray ban?

how to draw consumer profile of a typical buyer of ray ban?

Products element''s, Discuss briefly about product identification elements...

Discuss briefly about product identification elements

Organization behaviour, 1. Whom do you think Rajender will eat with? Why?

1. Whom do you think Rajender will eat with? Why?

Intensive and selective distribution strategy, Question 1: You work in ...

Question 1: You work in a travel agency. Recently published market research has revealed the existence of a variety of different types of customer who book package holiday.

Calculus, A rectangular solid block of ice is melting such that the height ...

A rectangular solid block of ice is melting such that the height is always twice the edge of the square base. Find the expression for the instantaneous rate of change of surface ar

Idea generation - new product development process, New Product development ...

New Product development Process Idea Generation In the new-product development procedure, the first step is idea generation, which is the systematic discovery for new p

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