2.0 Pricing and Promotional Analysis
2.1 Line Stretching
The Line Stretching method is applied to the Malaysia second largest car producer Perodua. This company uses both Down Market Stretch and Up Market Stretch. For example, the Perodua Alza has total of 3 different versions. The normal version of Perodua Alza cost about RM59k for automatic transmission. The company introduced an advanced version of Perodua Alza later which comes in a better quality interior, built in GPS and a more stylish bodykit. The advanced version of Perodua Alza cost about RM70k for automatic transmission and it is an Up Stretch Market pricing product. According to Motortrader.com (2012), a lower end version of Perodua Alza was introduced by the company in 2012 and it is called the Perodua Alza SR. The Perodua Alza SR which is a Down Market Stretch product was introduced to enable everyone can afford to buy this most sellable MPV. The selling price for this low end version of Perodua Alza was estimated about RM53k as only the normal appliances were used in the car and the sport rim size of the car is also smaller.

2.2 Optional-Feature Pricing
As in Optional-Feature Pricing, most of the automobile company like Lexus, Toyota and Honda as well adopt the Optional-Feature Pricing. For example, the Lexus CT-200h which is a sporty hybrid car is available in two variant which is the normal variant and luxury variant. The normal variant of CT-200h was priced at RM167k where the luxury version of CT-200h was priced at RM195k. There is difference of about RM33k between these two version of CT-200h and consumer are paying the extra RM33k for extra feature in the luxury version like rain sensor, smart entry, navigation system, Bluetooth-Hands-free, remote touch controller, dual zone air conditioning, cruise control and more to be mentioned. If the customer wants to enjoy these extra luxury features, they can choose to buy the luxury version or else the normal version if they do not want these extra features (Lexus Malaysia, 2012).
2.3 Mark-up Pricing
We believed that Mark-up Pricing were widely used in today’s business because the owner of businesses always want to earn a higher profit margin to cover up some expenses like advertising, promotion as well as maintenance. The Mark-up pricing strategy has been adopted by a well-known automobile company – Volkswagen. Their cars were sold at a more expensive price compared to other automobile company because they offer 5 years warranty which is the longest period compared to all the automobile company available in the market. The reason Volkswagen can give their customers 5 years of warranty because they have mark up the car’s price to cover the service and warranty expenses. Mark-up Pricing is a very good strategy to increase the profit margin.

2.4 Promotional Pricing
Promotional option can be used to stimulate the sales. One of the automobile companies that use this method is Proton. Recently Proton has created an event at Stadium Bukit Jalil to do a pre-launch selling of their new car Proton Preve. During the pre-launch selling, customers do not have any idea how the car looks like, but they will be given early bird discount if they book the car during the event. Beside, some of the company like Nissan and Peugeot try to offer a lower rate of interest if consumer purchase the selected car, the interest rate can be low up to 1.88% p.a. This might attract more customers to buy car from these company as the low interest rate is one of the benefit get by the customers. Company like Proton also offers an attractive discount up to RM5k if the customers buy the new car like Proton Persona by trading in any of the old car.

2.5 Product Line Pricing
In the Product Line Pricing, we can see that almost all of the automobile company uses this method in their price setting strategy. We take Honda Civic as an example. There are total number of 2 line introduced for Honda Civic which were 1.8cc and 2.0cc. These two cars were priced differently as the 1.8cc cost about RM116.5k and the 2.0cc cost about RM126.5k. The price is different because the power of the engine is different and customers associate different perceived quality with each price level. This strategy is commonly used as there will be different variant of cars available for each model. Therefor e, customers will have expectations that if they want a better performance and better engine power car, they will have to pay a higher price.