Pricing strategies used by firms,windows media player 12 download gratuit,advertising rates definition,best video editor for windows pc zur?cksetzen - Good Point

Youa€™ll be joining the 130,000 Smart Insights members from 80 countries who trust our advice to Plan, Manage and Optimize their marketing.
This model relating pricing for a product or service to the quality delivered may not be as familiar as some other marketing models we have covered in our classic marketing model series, although it was created by author Philip Kotler. You can use the Price - Quality Strategy Model to review competitorsa€™ products and services and review their strategies. This is the High value strategy, where a higher quality product is provided and more expensive components are used.
This is a similar low price strategy involving setting a low initial price to capture market share initially, then when the market grows and costs decrease, costs are reduced further.
When they introduce a new product, such as fans and heaters, these follow the same premium pricing strategy. The objective was for maximum profit, so when Apple iPhones were the first smartphone in the marketplace they could set high prices before other players entered. The objective was product-quality leadership which was followed by Dyson Vacuum cleaners,A They design and manufacture quality products, based on years of research, testing and significant investment into patents. Waitrose's objective was more than survival but to recapture customers, or stop them switching. For maximum sales growth, Subway sandwiches offer a lower price lunchtime snack and now have more outlets across the UK than MacDonald. If youa€™re developing products and changing the quality, perhaps saving money and reducing one element of the process, review the price too, or you could fall into False Economy or Rip-Off strategies. In our free, illustrated guide to 15 classic planning models diagrams we explain what they are and give examples of why and how to apply them in business. Congestion pricing and public transportation convey mutual benefits—road pricing benefits public transportation by improving public transportation speeds and the reliability of public transportation service, increasing public transportation ridership, lowering costs for public transportation providers, and expanding the source of revenue that may be used for public transportation. Public transportation benefits road pricing by absorbing commuters who shift their travel from automobile to bus or rail. Recent experience suggests that the effect of congestion pricing on public transportation depends on the type of pricing strategy implemented. The current experience with HOT lanes suggests that variably priced lanes do not generate a shift to public transportation per se; however, in many cases, some of the revenues generated by the lanes are dedicated to public transportation. The four variably priced express lanes in the median of the State Route (SR) 91 freeway opened in December 1995. Although local public transportation vehicles use the express toll lanes, there is little impact on public transportation operations from this variable-pricing application (Jackson, Zirker, Peirce, & Baltes, 2008).
Although this operation is primarily seen as a traffic-reduction highway initiative, the San Diego HOT lanes have always had a public transportation link in its concept and operations. Overall, the I-15 FasTrak® value-pricing program has been so successful that construction is underway to expand the system by 2012 to a 20-mile, two-directional managed-lane project that extends from downtown San Diego to Escondido in the far northern part of the county. There are approximately 105 miles of HOV lanes that are operating in the Houston metropolitan area.
In May 2005, the Minnesota Department of Transportation (MnDOT) opened the I-394 HOT-lane corridor. Since the I-25 express lanes opened in Denver, CO, in June 2006, usage levels are above predicted use. With variable tolls, flat toll rates on existing toll roads are changed to a variable-toll schedule so that the toll is higher during peak-travel hours and lower during off-peak or shoulder hours.
In February 2001, the Port Authority of New York and New Jersey changed its tolling system from fixed to variably priced along its numerous Hudson River crossings. The variable-pricing program on the Cape Coral and Midpoint Bridges in the Fort Meyers, FL, area is a small-scale project. Zone-based pricing involves charging a fee to enter or drive within a congested area, usually a city center. On February 17, 2003, London implemented an ambitious plan for using pricing to combat congestion in central London. The congestion charge had been in the planning stages since the mid-1990s but was ultimately implemented by London’s first elected mayor as one component of his transportation strategy for the region. A detailed, pre-charge review of bus services resulted in improved frequencies on 53 routes and the use of larger vehicles on 10 routes, that is, a change to double-decker or articulated buses. Evaluation results indicate that the charging system has been successful in reducing congestion by about 25 percent within the zone and has led to substantial increases in bus ridership. Bus travel times and reliability improved due to the reduction in traffic congestion brought about by the charge. One noteworthy aspect of the London case is that Parliament granted a single agency, Transport for London, final authority for almost all aspects of transportation in Greater London, including the Underground and bus networks, light rail, maintenance on major roads, and the congestion charge itself. The cordon-pricing trial results were very favorable, with public acceptance climbing throughout the trial, from under 30-percent approval before the trial to over 55 percent toward the end.
The clear lesson is that expansion of public transportation alone was insufficient to meaningfully impact congestion; the real change occurred after the congestion charge began. Traffic congestion was significantly reduced when peak-period pricing was introduced in downtown Singapore during the morning rush hours in 1975. The State of Oregon has tested a pricing scheme that involves per-mile charges, which it will consider using as a replacement for fuel taxes in the future. This type of congestion-pricing strategy does not involve tolls and is discussed in greater detail in a companion primer, Non-Toll Pricing. The vast majority of employers provide their employees with free parking at work; few offer any transit or other commuter benefits. Free on-street parking provides an incentive for motorists to circle around congested urban blocks in search of a space and to bypass commercial garages that do have space but for which the driver must pay to use. All congestion-pricing schemes deployed in the United States to date have had the primary goal of congestion reduction (via modifications to travel times and routes) followed by revenue enhancements. Thus far, public transportation involvement in domestic value-pricing strategies has been limited. International zone-based pricing experiments could not have been successful without involvement from public transportation.
Changes to public transportation service must be tailored to local conditions, travel patterns, and public transportation capacity constraints. In London, careful planning ensured that sufficient buses were provided to keep occupancy rates relatively constant, thus preventing overcrowding.
Although the increase in demand for public transportation as a result of congestion pricing can be relatively modest overall, it can still require major service changes for certain hours, locations, and directions of travel.
The Federal Transit Administration (FTA) published its policy on HOV to HOT conversions in February 2007 (Federal Transit Administration, 2007). The HOT lanes were previously HOV lanes and were reported in the National Transit Database as fixed guideway miles for purposes of the funding formulas administered by FTA. This is a variation of the PWYW model, where the price has to exceed a threshold to get the product. Defined Price Ranges – Gifts site where NYP can be a guide to show products that are within that price range. High Perceived Value – The perceived value of the product is much higher than the cost of procuring it, prompting the consumers to name a higher price.
Imprecise Value – The products can be sold at a wide range of prices and still generate a profit. The pay-what-you-want strategy — PWYW — has been around for a while but has not been used heavily in the online retail space. Limited Categories – This strategy does not need to be implemented for your complete online store. Link to Charities – If your site shares revenue with charities, then PWYW can work, as customers often pay more to help the charity, increasing your share of the revenue in the process. Offer an Incentive – You can also tie the PWYW strategy with an incentive…such as an additional product once the price exceeds a certain threshold, say $10. Proper Customers – If you believe that your customers are fair-minded and understand the value of your products, then PWYW might be effective.
This is a relatively new strategy where specialized yield management algorithms are used to personalize the price offered to each visitor.
New Products Regularly – There are many products in the online store, with new products introduced regularly. Repeat Customers – Customers know that they will be rewarded with personalized pricing and promotions based on the loyalty to your site. Wide Profit Margins – Products are sold with good margins, allowing the retailer to offer discounts at any time. Flat pricing is a strategy where a limited number of prices are used for all product offerings, such as in dollar stores where every product is priced at one dollar. Many Similar Products – Your site sells a wide variety of products that are priced nearly the same.
Subscription Pricing – A new trend in online retail is subscription pricing, where customers can sign up for a flat price of, say, $25, $49, or $99 to receive a set of products every month. Several software companies are using free pricing successfully where the software is given away for free and customer is charged either for support or for premium features.
Emphasize Consumables – Products that have durable and consumable components can benefit from a free pricing strategy, if customers can only buy both pieces from your site. Loss Leader – Use this strategy to offer products for free using the loss leader model. Seasonal Products – If your site sells seasonal products, then this strategy can drive traffic.


Typically, there are few competitors and a strong brand driving demand, so a higher price can be set. The cost-plus pricing model has long gone as we expect goods and services to be appropriately priced. Their Essential range was launched as the UK hit the recession to re-capture shoppers buying from discount stores, so they reduced the prices of their basic food. By replacing traffic with free-flowing conditions on major routes, congestion pricing can improve the speed and productivity of current express bus services, making them more attractive to commuters while reducing operating costs.
At present, variably priced lanes have had limited effect on public transportation usage, whereas the impact of zone-based (cordon or area) pricing has been significant.
On HOT lanes, low-occupancy vehicles are charged a toll, whereas high-occupancy vehicles (HOVs), public transportation buses, and emergency vehicles are allowed to use the lanes free of charge or at reduced rates. The objectives of the SR-91 express lanes were to generate revenue and to provide additional highway transportation options.
Although a commuter rail line and an express bus line both operate in the SR-91 corridor, total public-transit ridership in the corridor amounts to less than 1 percent of the highway traffic (Sullivan & Burris, 2006). The HOT lanes currently generate annual toll revenues of approximately $1–$2 million.
A key component of this $1 billion expansion project is the inclusion of direct access ramps to five new BRT stations. The HOV lanes are owned and managed by the Metropolitan Public Transportation Authority of Harris County (Houston Metro). This encourages motorists to use the roadway during less-congested periods and allows traffic to flow more freely during peak times.
An early analysis in June 2001 showed some effect on travel and public transportation patterns at a few key locations. To provide an incentive for motorists to adjust their travel times, half-price tolls are offered during a short period prior to and after peak hours to those vehicles registered with Lee Way prepaid toll accounts.
The scheme requires the payment of an £8 ($16) fee to enter a 15-square-mile area of Central and West London, which includes the historic and commercial core of the city. Enhanced public transportation services were at the core of this strategy and were deployed well in advance of implementing the congestion charge. Fifteen routes were restructured or extended, and seven entirely new routes were introduced. The charge raises £122 million ($240 million) per year, which by law must be reinvested in transportation.
This fosters cooperation between the various modes of travel and appears to have been a significant success factor in coordinating the start of the congestion charge with additional public transportation services. It was first deployed on a trial basis from January 2006 to July 2006 and was made permanent in August 2007. It was the largest increase in public transportation investment in modern times and accounted for an overall 7-percent increase in public transportation service. There was an immediate 22-percent drop in vehicle trips into the zone, a decrease in travel times, and a large shift to public transportation—ridership on inner-city bus routes rose 9 percent. Both additional public transportation service and congestion pricing are necessary to reduce congestion (Jackson, Zirker, Peirce, & Baltes, 2008). A congestion-pricing component was tested, with higher charges during congested periods on high-traffic road segments. Even when alternative benefits are offered, they are generally capped at a far lower value than the parking subsidy that is provided. Studies show that on average, 30 percent of traffic in dense urban areas can be attributed to such circling. Most areas have barely acknowledged mode shift as a goal and usually recognize it only as a byproduct of pricing initiatives. To capture the mutual benefits of congestion pricing and transit, upper management at both highway and public transportation agencies must commit to jointly develop multimodal congestion-pricing programs. Enhanced public transportation services are an essential component of a zone-based pricing system and must be comprehensively planned and deployed well in advance of zone-based charging.
In both London and Stockholm, this meant significant increases in bus services due to capacity constraints on the underground networks.
In the year following the beginning of zone-based charging, overall bus ridership was up by only 2 percent in Greater London, but inbound morning ridership increased by 38 percent. Department of Transportation (USDOT) announced the National Strategy to Reduce Congestion on America’s Transportation Network. Facilities that were not eligible HOV lanes prior to being converted to HOT lanes will remain ineligible for inclusion as fixed guideway miles in FTA’s funding formulas.
This could include one-of-a-kind products or art, where it is difficult to assess the value.
A well-publicized offline success is Panera Bread restaurants, which has used this pricing strategy in a few of its restaurants. This threshold can be kept secret or made public on the site as a marketing tactic to encourage customers to pay more.
With the rise of Big Data, most of the personalized pricing is done in real-time by analyzing a variety of factors like customer loyalty, device used by the shopper, customer preferences, history of purchases, and so on.
This makes personalized pricing more effective as repeat customers see the new product and the new promotional pricing to reward their loyalty, or to encourage a first purchase for new ones. For example if the product is sitting in a shopper’s cart for a few days, the retailer might offer a discount or drop the price to encourage the shopper to complete the purchase.
In this scenario, flat pricing is simpler to manage, easier for consumers, and also results in greater profit. A free pricing strategy can be an effective strategy for ecommerce merchants to attract customers by following the following guidelines. Premium Versions – This strategy can be effective if the basic version is free and the customer pays for a premium version.
For example, Gillette sometimes offers shaving razors for free since only Gillette shaving blades will work with its razors. Customers come to the site to get the free products and once they are on the site, you can up-sell or cross-sell them other products. Which one you decide to use depends on the level of assertiveness and cooperation involved.
That would be a mistake since each has its place depending on the situation and the level of conflict being experienced.
The aim is to help companies position their products or services relative to competitors as perceived by the market, and consider their pricing strategy accordingly.
One marquee hire company I worked with offered high quality service and a very low price which was a superb-value strategy. Every year, we invest half our profits back into harnessing them at our research and development laboratory in Wiltshire. Reducing congestion can also facilitate rapid deployment of innovative, high-performance bus-rapid-transit (BRT) operations in major corridors, which require only modest investments in new vehicles and passenger facilities. Approximately half of the toll revenues are used to fund the Inland Breeze bus express service between northern San Diego County and downtown San Diego along the HOT lanes. The high-frequency BRT service is currently in development and will address the shortcomings of the Inland Breeze express bus service (Jackson, Zirker, Peirce, & Baltes, 2008). Public transportation vehicles, carpools with specified occupancy, vanpools, and motorcycles are allowed to use these lanes.
This was made possible through strong enforcement and by incorporating the latest technologies into the HOT-lane operations.
Peak-toll rates may be high enough to guarantee that traffic flow will not break down, thus offering motorists a reliable and congestion-free trip in exchange for the higher peak toll. These cities’ experiences demonstrate that properly structured zone-based charging schemes can reduce urban congestion and increase public-transportation ridership. Most of the public transportation investment was focused on the bus system, with 300 additional buses put into service months before the congestion charge was initiated.
All of these changes were implemented in 2002 and early 2003, months before the congestion charge actually took effect.
By contrast, there has been little change in ridership on the London Underground and suburban rail services.
An additional institutional factor that has proven important is support from other layers of government. As the fixed-track (rail) service was already considered fully utilized during rush hours, it was clear that much of the increase in capacity had to be achieved by investing in extended bus service. Residents of the City of Stockholm voted for continuation of the system in a referendum on September 17, 2006. General Accounting Office noted that in 1975, the Singapore city government instituted a $1 charge for private vehicles to enter the central business district during the morning rush hours.
The Puget Sound Regional Council tested the travel behavior impacts of a similar charging system in the Seattle metropolitan area during 2005–2006. Introducing on-street-parking pricing is a public acceptance challenge, although technologies such as pay-by-cell-phone systems and mid-block parking-ticket-dispensing machines that accept credit cards can help.
In London, planning for the zone-based charge began in the mid-1990s and included a series of progressively more detailed analyses.
On the basis of analysis of its travel patterns, Stockholm also emphasized express services from the suburban municipalities to the inner city, with accessible locations, limited-stop service, and frequent operations.
The focus on the bus system also made sense, given that it has proven impossible to provide air conditioning in the Underground.


Although overall public transportation ridership increased by 6 percent in Stockholm, the city saw increases in inbound morning ridership of 10 percent on the buses and 13 percent on the Underground (even with its capacity constraints). One major component of the National Strategy is the Urban Partnership Agreement (UPA) Program, through which the USDOT partners with specific congested metropolitan areas to demonstrate the effectiveness of synergistic combinations of proven strategies in reducing traffic congestion.
This model has been successfully used in the travel industry, among others, where availability of airlines, hotels, and travel dates is based on the named price.
The retailers can use price discrimination in combination with this strategy to increase their profits. The life insurance industry uses this approach, where a basic $10,000 insurance is often free.
On the other hand, it does not make sense to give away a laser printer for free because the printer paper and toner can be bought from anywhere. There are 650 engineers and scientists based there.' They share their story and a€?behind the scenesa€™ details, such as the hammer test (below), to justify their premium pricing strategy.
Improving the performance and variety of peak-period public transportation through a combination of congestion pricing and limited capital investment can provide significant benefits to current public transportation users. People can meet the minimum vehicle passenger requirement, or they can choose to pay a toll to gain access to the HOV lane. The toll schedule is adjusted every 3 months based on traffic observed over the prior 3-month period. The toll varies based on the congestion level, which is analyzed every 6 minutes, with appropriate modifications made to the toll rate if needed. Ridership on the Inland Breeze is modest, and most of its riders had been using public transportation prior to its advent; thus, the new express bus service had little direct impact on congestion. The QuickRide program operates on two HOV facilities (I-10 and US 290) on which two-person carpools are required to pay a toll of $2.00 to use the HOV lanes during certain specified peak times when only vehicles with higher occupancy levels may ride free. Regional transportation district buses operated over 96 percent on time in the first year of operation of the HOT lanes. Variable tolls can also be introduced on existing toll-free facilities to manage traffic flow. However, there has been no discernable public transportation interest in this bridge-toll-pricing system (Jackson, Zirker, Peirce, & Baltes 2008). More important, there is a significant relationship between the success of zone-based pricing and the provision of public transportation.
In the first year, ridership into the zone during the morning peak was up by 29,000 passengers (38 percent). In this case, the required level of public transportation investment exceeded the net revenue produced from the congestion charge, and public transportation funding, which was made available by the central government, offset the shortfall. During the trial, the public transportation system added 197 new buses and 16 new bus routes to allow for additional alternatives for travel during peak periods. However, in the absence of a reliable and viable public transportation alternative, higher fees have not led to significant modal shifts. Much of the additional public transportation service was rolled out as early as one year before the advent of charging. Stockholm increased park-and-ride spaces by 18 percent and heavily publicized the new parking options. Passenger comfort is an important factor when planning changes to public transportation service in anticipation of zone-based charging. Another noteworthy lesson is the role that private service providers played: The timely expansion of bus services in London was possible because of contracts with private service providers.
This strategy can also work well for online retailers that are selling the following types of products.
In almost all cases, this strategy did not result in a significant profit or loss but led to a lot of free marketing. If even a small percentage of customers buy the premium offering, the insurer makes a profit. Research showed that potential customers were suspicious and didna€™t place orders with them as they thought the product quality was low because the price was low.
It can improve public transportation’s effectiveness in reducing peak-period auto travel and can provide the expanded passenger-carrying capacity necessary to accommodate shifts in public transportation commuter use induced by the imposition of congestion pricing.
With citizens growing more frustrated with under-used HOV lanes, HOT lanes are increasingly being viewed as a solution that can reduce public opposition to HOV lanes. Still, public transportation improvements financed by toll revenues contributed to a 25-percent increase in bus ridership. Although a large number of public transportation vehicles use the HOV lanes, including express buses, there does not appear to be a strong connection between HOV lanes, the QuickRide program, and public transportation. As is typical with all Minnesota HOV lanes, public transportation, carpools, and motorcycles never pay a toll.
Again, tolls vary by time of day and are charged only on congested highway segments to manage traffic flow and to recover the highway’s capacity to carry the number of vehicles for which it was designed. There is an array of exemptions, including a 90-percent discount for residents of the zone.
Overall, total scheduled bus mileage within the zone (including on the boundary) increased by 10 percent between January 2002 and January 2003. Half of this was attributed to the congestion charge itself as opposed to other improvements that had been made to the bus system.
Of the 16 new bus routes, 14 were express buses with enhanced comfort, transporting people from the municipalities surrounding Stockholm into the inner city. Exhaust emissions decreased by 14 percent in the inner city and by 2–3 percent in Stockholm County.
There was substantially less congestion on Stockholm access roads and a significant reduction in traffic to and from the city center. The result was an immediate 73-percent decline in the use of private cars, a 30-percent increase in carpools, and a doubling of buses’ share of work traffic. Parking cash-out allows employers to offer their employees the option of receiving taxable cash in lieu of any parking subsidy offered, thus providing employees an incentive to find alternatives to driving alone during peak periods. Insufficient development of park-and-ride facilities has greatly limited public transportation’s involvement in the domestic-pricing deployments.
Congestion pricing had been under discussion in Sweden since the early 1990s, and once the decision was made to begin zone-based charging, a year was spent comprehensively planning service modifications and their related impacts.
Selection criteria were applied to ensure that the new parking spaces were in close proximity to public transportation options, and parking was free with a public transportation pass.
Express toll lanes are similar to HOT lanes—the difference is that all vehicles are required to pay a toll, that is, HOVs do not get free service. On the basis of a 2004 evaluation of the QuickRide program, there were a number of complaints in regard to existing Houston Metro service along the HOV corridors.
Although value-pricing objectives stated that road-use charges seek to provide incentives to shift some trips to off-peak times, less-congested routes, or alternative modes, a November 2006 evaluation found that most public transportation providers reported negligible impacts on operations as a direct result of the MnPASS deployment. These service expansions coincided with other ongoing efforts to improve bus services, including improved traveler information, exclusive bus lanes, electronic fare payment, stricter enforcement of bus lanes and parking restrictions, public transportation signal priority, and low-floor and accessible vehicles. In spring 1998, the city shifted to a fully automated electronic-charging system, with in-vehicle electronic devices that allow payment by smart card, which is enforced with the use of cameras and license-plate–reading equipment.
Among 1,700 employees in eight case study firms in Southern California, parking cash-out led to an 11-percent reduction in commuter trips and a 12-percent reduction in commuter vehicle miles traveled. If mode shift is a project goal, properly sited parking must be developed to accommodate increased public transportation demand. New and enhanced public transportation service was launched 5 months in advance of the imposition of the congestion tax, which provided time to iron out problems and publicize the service. The service is not generating substantial and sustainable modal changes that favor public transportation ridership (Jackson, Zirker, Peirce, & Baltes, 2008). The evaluation went on to emphasize that the MnPASS deployment will not result in mode-share changes to the I-394 corridor (Jackson, Zirker, Peirce, & Baltes, 2008).
Overall, bus ridership across the zone boundary during charging hours is now 37-percent higher (70,000 additional passengers) than before the charge. All existing bus routes added more frequent trips, and train lines added off-peak capacity where possible. Variable electronic charges were also introduced on the expressway system, with charges set by time of day to ensure free flow of traffic. The additional bus capacity provided decreased impact on load factors: From 2002 to 2003, average occupancy on inbound morning buses only increased from 32 to 36 and has since moderated. The system, the first of its kind in the world, has reduced traffic by 13 percent and increased vehicle speed by 22 percent (U.S. The cost for passing a control point varied, and there was a maximum charge per day, initially set at $8 per day. No congestion charges were made for travel during the evenings or at night, Saturdays, Sundays, or public holidays.
Certain vehicle types, such as emergency vehicles, those with disabled drivers, and buses, were exempt from the tax.
There were no resident discounts, except for residents of one land-locked island, which is only accessible by passing through the cordoned area.



Best marketing agencies to work for london
Make your own free video game
Proximity marketing software for mac
Affiliate marketing meaning


Comments to «Pricing strategies used by firms»

  1. 10.08.2014 at 13:53:44

    BESTGIRL writes:
    Will permit you and oil and gas industries) are this "PDF editing program". More complicated.
  2. 10.08.2014 at 13:29:25

    H_Y_U_N_D_A_I writes:
    FLV for video MP3, WAV.