Pricing Objectives and Tactics

Pricing Objectives and Tactics (25 Marks)

Retail financial institutions such as banks and credit unions offer financial products and services to consumers and therefore, they are considered retailers. The two types of retail financial institutions in Canada are chartered banks (such as the Royal Bank of Canada and the Bank of Nova Scotia) and credit unions (such as Vancity Savings Credit Union, and Coast Capital Savings Credit Union).

Select one of Canada’s major chartered banks or credit unions offering products and services to consumers. Visit the company’s website and a branch and gather information related to the questions listed below.

Suggested time: 6 to 6.5 hours

Length: Please write your response in point and paragraph form and limit your response to 6 pages using 1.5 line-spacing.

Assessment: This part of the assignment will be assessed using the following criteria:

Depth (detail) of the analysis

Insight into the price objectives of financial institution

Explanation how to achieve price objectives through the most appropriate combination of price tactics and then link them to positioning and value proposition

Answer the following questions about price objectives, tactics, and positioning and value proposition:

a) What are the three financial objectives a retailer needs to maximize through its pricing tactics? Explain your answer. (6 points)

b) Describe one price tactic for each of the three pricing objectives the bank develops to achieve each pricing objective. (6 points)

c) Explain why you think the bank is using each of these three (3) particular pricing tactics. (6 points)

d) Do these three (3) pricing tactics support the three (3) financial objectives the bank is attempting to maximize? If yes, explain how they do support the financial objectives and if no, why they do not support the financial objectives. (7 points)