Page 6 - PCM - Pricing strategies Revista

RANDOM DISCOUNTING REAL LIFE EXAMPLE

R Supermarkets constitute a good example. They
andom discounting is a strategy, which is
usually apply this strategy in order to attract
related with the consumer’s search and
the search costs. Therefore, companies
discount through the discount brochures.
will separate the consumers through their cost of customers to buy. We can see these types of
search for a different price.

In this strategy:
(1) Consumers spend much time searching for the

best alternative (price);
(2) The price range of the willingness of

consumers will be between the minimum average

costs and the maximum price
(3) There is significant number of firms that set
prices in that range
https://www.continente.pt/pt-
Facing these, companies will set the price at the pt/public/Pages/Folhetos-Continente.aspx

maximum consumers are willing to pay and make

discounts to the minimum price (above or equal

to the average economic cost) consumers are
willing to pay.

Since there are different types of consumers

(ones more involved in the purchasing process),
the better decision to implement is making these

little discounts randomly. Consumers will follow

carefully all the discounts made by the company,

so the more random they are, the better is for the
company.

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PRODUCT AND CLIENTS MANAGEMENT