TOTAL WORD COUNT FOR THIS ASSIGNMENT IS 1500, 500 ON THE FIRST WORD DOCUMENT AND 1000 ON THE SECOND. THIS ASSIGNMENT HAS 2 SECTIONS, EACH SECTION MUST HAVE ITS OWN SEPARATE WORD DOCUMENT AND...

Section 1: Discuss the 4 types of Emerging Service Pricing Strategies in Chapter 6
Service pricing is the method of establishing the best pricing strategies or methods for a product or service. It helps to maximize the profit and shareholders’ value by incorporating the market demand and the demands from the consumers. (Blog Hubspot; The ultimate guide to pricing strategies; by Allie Decker)
Service pricing strategies considers the three exclusive service contemplations which are as follows:
1. Price has different name in different sectors and as a result is perceived in its own way in service sector also.
2. The products available in the service industry cannot be inventoried and hence the consumer of service cannot hold up or delay the purchase or acquisition process until a better price is offered in the future.
3. Lastly, there cannot be any price lining in service industry for the consumers which is permissible in the tangible product segment.
Now we will discuss about the four service pricing strategies that creates value for the consumers of services. They are: (1) Satisfaction based pricing strategy (2) Relationship pricing strategy (3) Efficiency Pricing Strategy (4) Adaptive pricing strategy
Satisfaction based pricing strategy: It is the type of service strategy which helps to retain the customers. It helps to reduce the perceived risk that occurs during purchase of services. It helps the target market to value certainty. It offers guarantee that if the consumer are dissatisfied with their purchase then the guarantee can be raised and refunded. On the other hand benefit driven pricing focuses on the features of service which the consumer actually uses. It involves a direct association between the price and the service that customers values.
Flat pricing strategy helps to reduce the uncertainties of the consumers by charging a fixed price before the service transaction happens.
Relationship pricing strategy: It is the pricing strategy created by the customer and company relationship. The best example can be the banking industry where the company tries to maintain a cordial relationship with its valued customers for opening of savings, cu
ent, loan and fixed deposit accounts which enhance the income of the bank. It helps in maintaining a long term relationship and bonding between the customer and the company.
Efficiency Pricing Strategy: It is for the economical consumer who wants to purchase the service at the least and the best prices. One of the best examples is that of the South West Airlines which reduced their cost by opting to fly in shorter routes, providing no meals to passengers during their travel, first come first serve journey and a ticketless travel for all their flights. It gives the best and the most reasonable pricing offer for the consumers. At this stage the companies are the price leaders due to their efficiently reduced service prices.
Adaptive Pricing Strategy: This is a service pricing strategy where companies offers discounts...