Saint Louis University

Baguio City
School of Accountancy, Management, Computing Please rate the following statements based on the scale given.
and Information Studies
For Awareness For Implementation
1 – Highly Aware 1 – Not Implementing
2 – Aware 2 – Partially Implementing
Dear Respondent, 3 – Slightly Aware 3 – Not Implementing
4 – Not Aware
Greetings!
Mention the extent to which following pricing policies are you aware of and are being used by your restaurant. (Kindly
We are fourth year students from Saint Louis University currently conducting a thesis study entitled “Level of Awareness check the boxes provided.)
and Implementation of Pricing Policies of Restaurants in Baguio City.”
AWARENESS IMPLEMENTATION
We wish to seek for your opinion and experiences regarding through this questionnaire. Any 1 2 3 4 1 2 3
comments/suggestions/feedback from your side shall be of great importance to us. The information provided by you will
be kept strictly confidential and will be used for research purpose only. Hope to get full co-operation from your side. 1. Cost-based Pricing
o Mark up pricing
Thank you and God bless! Under mark up pricing, the selling price is fixed by adding a margin to the cost price of the product. Depending
upon the nature of the service, product and market, the mark-ups may considerably vary. When the unit cost of
Respectfully yours,
the service is higher the mark-up is larger. Again when the turnaround of the service is slower, mark-up is larger.
BIAG, Justine Aeina R. MANUEL, Pauline Keith P. Approved by: o Absorption cost pricing
This is the full cost pricing method which is dependent upon the estimated unit cost of the service at the normal levels of
BUSTILLOS, Shaine S. PASIG, Airish Jade N. Mr. Lord Gen Rilloraza, CPA production and sales. Under this method, various components of manufacturing such as variable costs, fixed costs, selling and
Adviser administering the service are worked out. All these costs are added and required margin of profit is also included. This method
DE VERA, Justine Anne E. RODRIGUEZ, Hyra Shenelle A. does not consider demand factors by assuming the price to be a function of cost alone.
o Target rate of return pricing
Researchers The target rate of return pricing is similar to absorption cost pricing. Under absorption costing method, after the costs of
manufacturing, the cost of administration and cost of selling are absorbed on a per unit basis, the firm adds the mark up
towards profits. This mark up is arbitrary in nature. But under target rate of return pricing, a rational basis is used for arriving at
Personal Particulars of Restaurant the mark-up. The rate of return is linked to the level of production and sales assumed.
1. Name of Restaurant (Optional) ______________________________ o Marginal Cost pricing
2. Type of Restaurant The aim of Marginal cost pricing is maximizing the contribution towards fixed cost. Marginal cost pricing realizes all the direct
Pop Up Restaurant Café or Bistro variables costs of services and a portion of the fixed cost. Though marginal costing is basically a cost-based method, it also
Restaurant Buffet Fine Dining considers demand aspects. So, marginal costing price is effective under competitive condition also. It is a flexible approach for
Food Truck Family Style realizing fixed costs through different service products. Marginal costing rests on classification of costs into fixed and variable
components. In reality, there is also semi-variable costs. Such classification of costs is quite difficult in service industry. Where
Fast Food Fast Casual
the fums are capital intensive, selling on marginal costs may not be appropriate.

3. Type of Owneship
2. Value-based Pricing
Sole Proprietorship Partnership Corporation o Are you developing products
with benefits that align with
4. Years of Operation what customers are willing to pay for?
0-10 41-50 o Are you communicating how your
11-20 51-60 differentiating features and services
21-30 61-70 impact your customer’s bottom line?
o Do you have a way of charging
31-40 Others _______
 customers that tracks the value you
deliver across customers and applications?
o Do your discounting policies tell
your customer that price is determined
by value, rather than aggressive
negotiation?
o Are you ensuring that pricing is
implemented as intended, and that
price level changes reflect true
market conditions?

3. Demand-based Pricing
o Price skimming
pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
o Price discrimination
exists when sales of identical goods or services are transacted at different prices from the same provider.
o Psychological pricing
is a marketing practice based on the theory that certain prices have a psychological impact.
o Bundle pricing
is a marketing strategy that involves offering several products for sale as one combined product.
o Penetration pricing
is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new
customers.

4. Competition-based Pricing
o Premium Pricing
We feel able to charge some premium versus the competition because our product has attributes the
purchaser values over the competition. These attributes may be real, as in the case of a concentrated soap
that may deliver x% more volume of clean clothes, or perceived, as in the case of the luxury writing
instrument. Presumably you have a sense of how much the attribute(s) are valued to enable you to set the
premium. In the example below, the premium to the competition is $2/ unit, or 20%.
o Parity Pricing
In markets where there is little differentiation or a commodity orientation, competitors are often priced the
same.
o Discounted Pricing
Here we may adopt a price leadership strategy either because our product lacks certain attributes, or
because we believe that the market is price sensitive. Simple analysis would allow us to determine payback
for this strategy.
o High – Low Pricing
This strategy positions the list price higher than the competition and discounts are later applied to tactically
deliver a more competitive price point. Purchasers tend to peg the product value at the list price and
ultimately feel they are receiving tremendous value by buying at the discounted price. North American car
manufacturers often employ this approach, with discounts of $10,000 or more on some models.