*_bundling_* - "Perception of a deal" is definitely compelling. A popular bundling trend your students will recognize is the $5 meal deal fast food chains use. Five items for five bucks! What a deal!! Well, actually that drink costs the chain about a dime and more importantly you probably don't order fountain drinks normally. They just got an extra buck from millions of customers with little effort. Effective indeed. *_captive audience_* - It's not always in a confined structure like a stadium or airport. You make this point in your travel videos. Beach retailers use captive audience pricing all the time. Sun screen at a convenience store a mile from the beach is more expensive than in the city. BUT sun screen on the beach costs an arm and a leg. *_Another excellent lesson, Mark._*
I have worked for a few companies who used loss leader pricing to get people in the door who will also buy items with a higher mark up. There is also MAP, or Minimum Advertised Pricing which protects the brand integrity of a product line while, at the same time, allows the smaller retailer to thrive by selling quality brands without having to compete with larger competitors on price.
I love watching your videos, I'm a marketing student and I am learning alot from you. Especially because you provide several examples. In addition, I enjoy your different countries' videos. STAY TRAVELLING
At initial release introduction of a product there is often premium pricing or cream of the crop pricing that will last until the market catches up. It then becomes a question of how long you want to wait for the pricing to "normalize" before you buy. This is a difficult thing for companies to figure out, unless your name is Apple.
How about the forced pricing that companies like Nike and Under Armor set for clothing, and Stihl and Echo use for power tools. The company sets the price and every seller has to sell at that price. The only discounted sales on these products are manufacturer approved sales. Also, why is that not considered price fixing and therefor illegal?
MAP, or Minimum Advertised Pricing protects the brand integrity while, at the same time, allows the smaller retailer to thrive by selling quality brands without having to compete with larger competitors on price.
@@jasoncreech4486 There's captive. And then there's hostage. The mark up (no pun intended) on popcorn and soda is astronomical. There are also a lot of strange things that the people behind the counter are told to say to get you to spend even more. It's a strange kind of psychological manipulation.
what people don't consider is that it costs a theater money to show a movie. If a theater wants to show the newest star wars movie, they have to pay disney for those rights. and the newest action movies are expensive to make, and are getting more and more expensive. so your popcorn is now $10.50
I noticed Aldi does a semi captive pricing tactic. They change their prices daily on items, so you'll get used to buying an item for a low price and then one day you'll go in and the prices for most items are low as usual, but one item that you need to get will be higher than normal on that day (even higher than other stores would have it). Instead of waiting a day and coming back you will buy the item because you are already there and it's usually only that one or maybe two items so it's not as painful to overpay for it and it doesn't make sense to drive to another store to save $.20 on that one item. I haven't seen this tactic anywhere else yet, but it's pretty effective. Sorry for run on sentences, I've been up for too long.
After watching with me some of your videos (along with a few cynical videos from another teacher), my little niece told me about marketing: "It's tricky cheating fooling!" (She also says "tricky cheating" during Halloween, though.)
@@ProfessorWolters Necessity requires we eat the fruit from that tree of that kind of knowledge, and I can't think of a better, less evil vendor anywhere than you.
Love your videos, explanations, and analogies... thank you, Professor Wolters.
*_bundling_* - "Perception of a deal" is definitely compelling. A popular bundling trend your students will recognize is the $5 meal deal fast food chains use. Five items for five bucks! What a deal!! Well, actually that drink costs the chain about a dime and more importantly you probably don't order fountain drinks normally. They just got an extra buck from millions of customers with little effort. Effective indeed.
*_captive audience_* - It's not always in a confined structure like a stadium or airport. You make this point in your travel videos. Beach retailers use captive audience pricing all the time. Sun screen at a convenience store a mile from the beach is more expensive than in the city. BUT sun screen on the beach costs an arm and a leg.
*_Another excellent lesson, Mark._*
Pay double and get the second one free
amazing, this 9 minutes videos is wayyyyyy better than my 2 hours class. thank you Professor Wolter
That is what I'm going for :) glad to hear it
I have worked for a few companies who used loss leader pricing to get people in the door who will also buy items with a higher mark up.
There is also MAP, or Minimum Advertised Pricing which protects the brand integrity of a product line while, at the same time, allows the smaller retailer to thrive by selling quality brands without having to compete with larger competitors on price.
An amazing video professor Mark Wolters
Thank you
Love the energy and knowledge in this video! Thank you for sharing.
Cheers!
Love this video! Never thought about the pricing structures of other companies. Makes sense though.
Thanks for sharing!
You are very welcome
Within the travel industry, as the travel date approaches closer, Dynamic Pricing works inversely in Cruises vs other modes
we also have the odd pricing and leader pricing
Always learning something around here!
I love watching your videos, I'm a marketing student and I am learning alot from you. Especially because you provide several examples. In addition, I enjoy your different countries' videos. STAY TRAVELLING
Thank you. I'm glad the videos can help a bit too
At initial release introduction of a product there is often premium pricing or cream of the crop pricing that will last until the market catches up. It then becomes a question of how long you want to wait for the pricing to "normalize" before you buy. This is a difficult thing for companies to figure out, unless your name is Apple.
Thanks!
This video is useful
How about the forced pricing that companies like Nike and Under Armor set for clothing, and Stihl and Echo use for power tools. The company sets the price and every seller has to sell at that price. The only discounted sales on these products are manufacturer approved sales. Also, why is that not considered price fixing and therefor illegal?
MAP, or Minimum Advertised Pricing protects the brand integrity while, at the same time, allows the smaller retailer to thrive by selling quality brands without having to compete with larger competitors on price.
Popcorn in movie theatres! How did it get so crazy!?
seriously... it's like a mortgage payment if you want to feed the kids at the theater
I think that falls under the captive audience category that I just learned about! Great videos keep up the great work.
@@jasoncreech4486 There's captive. And then there's hostage. The mark up (no pun intended) on popcorn and soda is astronomical. There are also a lot of strange things that the people behind the counter are told to say to get you to spend even more. It's a strange kind of psychological manipulation.
what people don't consider is that it costs a theater money to show a movie. If a theater wants to show the newest star wars movie, they have to pay disney for those rights. and the newest action movies are expensive to make, and are getting more and more expensive. so your popcorn is now $10.50
I noticed Aldi does a semi captive pricing tactic. They change their prices daily on items, so you'll get used to buying an item for a low price and then one day you'll go in and the prices for most items are low as usual, but one item that you need to get will be higher than normal on that day (even higher than other stores would have it). Instead of waiting a day and coming back you will buy the item because you are already there and it's usually only that one or maybe two items so it's not as painful to overpay for it and it doesn't make sense to drive to another store to save $.20 on that one item. I haven't seen this tactic anywhere else yet, but it's pretty effective.
Sorry for run on sentences, I've been up for too long.
I will look at that next time. Thanks for letting me know
After watching with me some of your videos (along with a few cynical videos from another teacher), my little niece told me about marketing: "It's tricky cheating fooling!" (She also says "tricky cheating" during Halloween, though.)
I try to teach the nom evil style of marketing most days
@@ProfessorWolters Necessity requires we eat the fruit from that tree of that kind of knowledge, and I can't think of a better, less evil vendor anywhere than you.
Psychological pricing...eg $1.99