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Discount and allowance--pricing can take many forms: Discounts can be granted as a cash discount, a price reduction to buyers who pay their bills promptly.

example
Typical payment terms look like this: “2/10, net 30”, meaning that payment is due within 30 days, but the buyer can deduct 2 per cent if the bill is paid within 10 days. Also, a quantity discount can be given, which is a price reduction to buyers who buy large volumes. A seasonal account is a third form of discount, being a price reduction to buyers who buy merchandise or services out of season

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Discounts and Allowances are reductions to the selling price of goods or services. They can be applied anywhere in the distribution channel between the manufacturer, middlemen (such as distributors, wholesalers, or retailers), and retail customer.

EXAMPLE
Trade-in allowances are price reductions given for turning in an old item when buying a new one. For example, Apple company has created trade-in chances and 2 years ago, When I bought new iphone, I gave my old iphone and got discounts.

The aim of this strategy is attract people to give back their old items when they buy new version of them and then people get some discounts and both sides get benefit from this strategy.

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Promotional pricing is when a seller reduces the price of a product or service to attract customers as a marketing or sales tactic.

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Promotional pricing is when a seller reduces the price of a product or service to attract customers as a marketing or sales tactic.

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-Buy one get one free
-Save 20% off today
-Black Friday and Christmas sales

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Psychological pricing is a pricing strategy that utilizes specific techniques to form a psychological or subconscious impact on consumers. It integrates sale tactics with price. The idea behind it is that customers will read the slightly lower price and treat it lower than the price actually is.

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Psychological pricing is a pricing strategy that utilizes specific techniques to form a psychological or subconscious impact on consumers. It integrates sale tactics with price. The idea behind it is that customers will read the slightly lower price and treat it lower than the price actually is.

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The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for “value”.

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The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for “value”.

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Concrete measures: Innumeracy.

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-increases a product's value for a sales boost
-creates a perception of time-based scarcity
-making a product more affordable increases the interest of cost sensitive consumers

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An item that is priced $3.99 but conveyed by the consumer as 3 dollars and not 4 dollars, treating $3.99 as a lower price than $4.00.

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International pricing  is often considered the most critical and complex issue in international  marketing. The overall international pricing strategy  determines general rules for setting (basic)  prices and using price  reductions, the selection of terms of payment, and the potential use of countertrade.

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Geographical pricing is the practice of adjusting an item's sale price based on the location of the buyer. Charging higher prices to account for higher shipping charges to faraway locations can make a seller more competitive, as their products will be available to a bigger number of customers.

A type of geographical pricing called "zone pricing" is common in the gasoline industry. This practice entails oil companies charging gas station owners different prices for the same gasoline depending on where their stations are located. Aside from excise taxes, the wholesale price, and thus the retail price, is based on factors such as competition from other gas stations in the area, the amount of traffic the gas station receives, and average household incomes in the area—not on the cost of delivering gas to the area.

Also a  pricing method in which customers bear the freight costs from the producer's location to their own; examples of geographical pricing include base-point pricing and zone pricing as well.

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Price segmentation is the process of charging different prices for the same or similar product or service.
goal: absorbing the most various groups of the society to the product/service.
example:  Showing a student ID to get a discount at the theater is an example of a broader type of price segmentation. In this case both student(who most of times have less money) and people who have enough money to pay are absorbed to the theater.
The 2 Vital Steps to Implement Price Segmentation:
1. Segment the Market
2. Create a Pricing Mechanism

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-lowering price
-brining the sale to the attention of customers

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It is one of the most effective ways to get higher interest = higher sales volume.
People love the feeling of owning a scarce object, so playing on the feelings of people is the most profitable way of doing business.
Also lowering the price leads to lowering the entry barrier for customers, which leads to more sales.