Service Pricing and Marketing
Submit a 1500 words research paper on the topic Service Pricing and Marketing. Therefore the customer’s satisfaction and the perception of the service charged play an important role in determining the price (Christopher Lovelock).
Price discrimination of services may take place when the service providers are price takers and can set their prices at the going rate, there are strategies applied in price discrimination of services where these strategies involve setting the price for the first time these include: geographical pricing where different prices are charged to services in different locations depending on the distance, shipping costs and the need for countertrade.
Promotional pricing which involve different pricing on special events, loss leader pricing to increase the sale of service, long term payments, psychological discounting and cash rebates which will increase the sale of services for a certain period (Christopher Lovelock).
Price bundling is a marketing strategy that involves the marketing of a number of several services as a package and the general price is set for the whole package, therefore, increasing the service provision. The importance of this strategy is that customer’s benefits from bundles. they get discount, single billing, and integration of services. For the providers, they enhance customer value hence increasing their revenue and customer satisfaction.
Price unbundling of services is a price strategy in which customers are charged per service provided hence customers acquire one service at a time. This is important because cost associated with a service can be determined, customers can access variety of services and finally, it ensures that consumers who get more than one service are fairly charged (Christopher Lovelock).
Customers have different preferences in choosing channels of distribution when they want to get services. this variance is contributed by the effectiveness, efficiency, and reliability perception of the customer.
