Chapter 15 - Strategic Pricing Methods Marketing 5th
words. The problems must be enough that the students who will evaluate the pricing
strategy are able to determine the price. Instructors can visit each team and assist with
the creation of the story problems and/or review their story problems for presentation.
Have students include the answer at the bottom of the transparency but have students
cover the answer up when they present the problems to the rest of the class in a
game/competition. One member of team 1 presents each of the story problem, teams 2,
3, 4 each compete to determine the correct pricing strategy, and either the instructor or a
volunteer keeps score. 1 point for correct answer but teams can also lose a point for
determining the wrong answer. The team with the most points wins. Perhaps they receive
2 points on the next quiz.
I am the makers of Wii and have come out with a brand new skateboard game new to the
market that comes with an imitation board. No one else has this type of technology and
the game is in high demand. My goal is to maximize profits. What type of pricing
strategy would I use?
Answer: Prestige pricing (not revealed until the other teams have had an opportunity to
NOTE: This exercise will take some time but it does make the students critically think
and apply the pricing strategies. The instructor may want to allow the class to use their
books in deciphering which pricing strategy is being presented though they should have
pre-read the chapter and have a general knowledge of pricing strategies before being
assigned this exercise.
On-line Tip: Assign each student (in confidence) a pricing strategy. Have the student
develop a story problem. Meet on the synchronous platform to present the challenge
game using the same outline as above. Have each student present their word while the
other students try to evaluate what the pricing strategy is. Instructors can also make this a
team game in synchronous mode by first assigning a group of pricing strategies to each
group then competing in teams.
Remember to review the Newsletter for Instructors and its accompanied PowerPoint
presentation, which integrates examples and discussion from the newsletter. Each
newsletter contains over ten article abstracts on hot topics, plus a selection of current
commercials and videos for you to use with your class. The newsletter also includes a
guide that explains where the articles, commercials, and videos best fit in your Marketing
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