A01 chaf6542 06 se fm indd

5 

Are rivals monitoring my price? Be unpredictable if rivals are watching. Exploit ‘blind 

spots’ if rivals are not watching.

6 

Are we stuck in the middle? A middle pricing point is  sub-  optimal particularly if prices 

can be set to target the lowest point in the market.

4

 

Alternative pricing structure or policies

Different types of pricing may be possible on the Internet, particularly for digital, download-

able products. Software and music have traditionally been sold for a continuous right to use. 

The Internet offers new options such as payment per use, rental at a fixed cost per month 

or a lease arrangement. Bundling options may also be more possible. The use of Software 

as a Service (SaaS) (Chapter 3) providers to deliver services such as website traffic monitor-

ing also gives new methods of volume pricing. Web analytics companies such as Omniture 

(

www.omniture.com

) and ClickTracks (

www.clicktracks.com

) charge in price bands based 

on the number of visitors to the purchaser’s site.

Further pricing options which could be varied online include:

● 

Basic price

● 

Discounts

● 

 Add-  ons and extra products and services

● 

Guarantees and warranties

● 

Refund policies

● 

Order cancellation terms.