Price Segmentation

7/13/2019 Price Segmentation

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Materi Kuliah Pentarifan

Disusun oleh : Farda Hasun

Departemen Rekayasa Industri

Fakultas TeknikUniversitas Telkom


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Price segmentation (price discrimination in

economics) is the method of pricing the same

or similar products differently to different

customer segmentsObjective: increase profit of the company


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Price segmentation is a consequence of

market heterogeneity in willingness to pay

Heterogeneity in willingness to pay:

Derive different benefits Have higher income

Have more time to price-compare and therefore

more price sensitive


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First, Second and Third Degree PriceDiscrimination First degree or perfect price discrimination:

charging every customer at the price that

matches their willingness to pay Second degree price discrimination: charging

different customers different prices according tothe quantity purchased

Third degree: charging different markets ormarket segments different prices. An update toclassic third degree price discrimination isincluding benefit based price segmentation.Greater benefit is charged at higher cost


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Complete, Direct and Indirect PriceSegmentation: classification based on theinformation required to execute them Complete discrimination: equivalent to first

degree price discrimination. Requires completeinformation of all customers willingness to payin all situations

Direct segmentation: based on specific attributesof the customers, such as age, gender, location

Indirect segmentation: based upon a proxy thatcorrelates to customer segmentation based onwillingness to pay: usage quantity, package size,etc


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Strategic or Tactical Price Segmentation

Tactical price segmentation: approaches in

unique situation, such as price promotion,

coupons, rebates

Strategic price segmentation: price structures as

a segmentation approach


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Aftermarket transference

Product price with segmentation policies

need to have limited transferability


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The key to price segmentation is the ability

to separate customers who are willing to pay

more from those who are not construct

segmentation hedges Prevent customers who are willing to pay

higher price from paying a lower price

Four requirements for effective hedges:

Correlation with customers perception of value Information needed for its implementation

Enforceability

Cultural acceptability


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What

segmentationhedges

will be used?


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Customer demographics / firmographics

Age: child rate, senior citizen rate. E.g. children rate for airplane ticketChildren travelling with parents in group more price sensitive

Gender: ladies night, higher rate in salon for ladies

Income: scholarship for low income student

Time of purchase: indicator of leisure time. E.g. matinee price. Matineeprice not subject to time constraints associated with employment,more price sensitive

Purchase location

Some of price difference can be explained by additional cost to serve: price offood in airport

Buyer self identification: promotional sales, buyers club, coupons.Company gives discount to people who really price sensitive, so theyhave time to cut the coupons

Product engineered: addition or subtraction of specific features Quantity purchased: order size, frequent purchase

Customer usage: two part tariff, enterprise software pricing

Negotiation: Individual price


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Total volume

purchased

Stocking selection Customer

development / focus

Product mix Stocking level Dealer development

Order size Resale price Quality of warranty /

claims service to

customers

Order timing and

frequency

Competitor lines

carried

Returns behavior

Freight mode Promotional behavior Distribution / dealer

size and

concentration

Payment behavior Customer application

support / service

Distributor as a

buying group or co-

op


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Every Day Low Pricing (EDLP) telah menjadi formatyang populer untuk toko bahan makanan. Beberapatoko sejenis menerapkan Hi-Lo pricing di mana hargaproduk tertentu bergerak antara harga normal yangtinggi dengan harga diskon. Berdasarkan prinsip

segmentasi harga dengan pembatas segmentasi yangsempurna (perfect segmentation hedge), formatmana yang diantisipasi sebagai yang lebihmenguntungkan? Jelaskan jawaban Anda

Time of purchase merupakan salah satu segmentation

hedge. Salah satu penerapan adalah memberikanharga lebih tinggi pada saat liburan. Apakah ini cocokditerapkan pada produk kuliner yang dikonsumsi olehpenduduk lokal dan turis? Jelaskan jawaban Anda


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Pembatas segmentasi yang sempurna

(perfect segmentation hedge) akan

mencegah semua konsumen yang bersedia

membayar lebih untuk membeli pada hargayang lebih rendah.

Documents

Price Segmentation