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<p align="justify">Price adjustment strategies refer to all those strategies which are applied by an organization to take into consideration the differences among the customers and rapidly changing environment.&#160; The important price adjustment strategies are: geographical pricing, Psychological pricing, segmented pricing, promotional pricing, international pricing, discount and allowance pricing. The explanation of these strategies is given below. </p>
<p align="justify">&#160;</p>
<ul>
<li><strong>Discount and Allowance Pricing</strong> </li>
</ul>
<p> &#160;</p>
<p align="justify">Various companies offer discounts and allowances on their basic price to reward the customers for their specific responses. Discounts can take many forms such as cash discount in which the buyer are given special discount if they pay before the due date of payment. Similarly quantity discount is given on the purchase of commodities in large quantities. For example price of one shirt is $5 but if buyer buys two shirts then the price is $4 per shirt. Other forms of discount are functional discount (in which is given to the channel members by seller for performing certain functions) and seasonal discount (in which discount is given to the buyers for purchasing goods out of season). </p>
<p> &#160;</p>
<ul>
<li><strong>Segmented Pricing</strong> </li>
</ul>
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<p align="justify">Companies use segmented pricing to charge different prices from the buyers on the basis of differences in customers, products, and locations. Some of the important forms of segmented pricing are customer-segment pricing, product form pricing, location pricing etc. Under customer-segment pricing, companies charge different prices from different customers. For example students pay less for tickets of football match compared to other citizens. In case of product form pricing, customers are charged differently on the basis of different versions of the product. Here we can take the example of mobile phones which are priced differently on the basis of features but these features cost only a few more dollars to make. Similarly in case of location pricing, companies charge different prices from the customers on the basis of their preferences for certain locations. For example in cricket matches, the prices of tickets are different on the basis of location even though the cost of offering at each location is the same. </p>
<p> &#160;</p>
<ul>
<li><strong>Psychological Pricing</strong> </li>
</ul>
<p> &#160;
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