Price schedule is explained below:
Price schedule is a list of prices that shows the prices of purchased products or services.
Pricing schedule at movie theatre complex is given below:
The movie theatres usually follow various pricing schedules which depend upon the categories of movies. The movie with the top cast will have high prices in the initial release days and the movies with normal or new cast will have a relatively less price.
Differential pricing or price discrimination:
Differential pricing is a strategy used to sell the product to various customers at different prices.
Pricing strategy for discovered price differentials:
In order to attract customers for the afternoon shows, the theatre usually provides discounts and special offers to movies having a normal cast.
Price discrimination of matinee shows is given below:
The demand of evening shows is higher than the demand of matinee shows. Hence, the movie theatres start charging matinee shows with low price and evening shows with high price.
Value pricing is a concept that emphasizes on product benefit at comparative levels of price and quality.
Tackling cost pressures:
Cost pressures increase prices and disrupt production and ultimately the final output. In order to tackle the situation, the quality and quantity of raw materials is reduced.
In the current situation, due to increase in prices of food material, the owner reduces the meal portions and uses cheaper ingredients. These menu changes are not intimated to the customers.
"X customer orders a food item and finds it to be of bad quality and less quantity."
• Customers are the king of any business. They make a business flourish and at the same time they turn around the business to a huge loss. In the current instance, the restaurant advertises the quality but does not inform about the quantity or menu changes.
• When the customer notices the quality and quantity changes, he will definitely question the waiter. At that time he can apologize to the customer and satisfy his current needs to stop further quarrel.
Here, the waiter is representing the restaurant and thus he cannot give up his organization. Instead, he must try to get rid of the situation smartly without explaining in detail. But, if X is a regular customer he can explain the management's decision.
Price determination is explained below:
Price determination is the process of determining or evaluating prices of the products that interact with two market forces (demand and supply) in the marketplace.
Price determination for the following activities is given below:
a. Ticket to local museum:
The ticket price can be determined based on the demand among the audience. The demand will be categorized by the number of audience visiting to the museum every day. Valuable costs, human personnel, and other security issues should be analyzed in detail before determining the ticket price.
b. College tuition:
The price of college tuition should be determined based on the number of competitors and their prices. It is also determined based on the semester hours and courses provided by the institution.
c. Local sales taxes
The local sales taxes are determined and controlled by the specific government authorities. The prices are determined in a monopoly environment, where the government plays a leading role in the determination of prices.
d. Printing of business cards
The price of printing of business cards is determined by the market. It should be based on the customers' requirements, time of delivery, type of paper, color, and designs.
e. Lawn mowers:
The price of lawn mowers are determined and controlled by the market suppliers since it belongs to the monopolistic competition. It should be determined based on technology and demand of the product.