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Disadvantages Of Pricing Strategy

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Price strategy refers to the enterprise through the estimation of customer demand and cost analysis, choose a can attract customers, to achieve the marketing mix of strategies.
A good pricing strategy can help you determine the price point that maximizes your profit when you sell your product or service. Although the customer does not buy goods that are too expensive, if the store's commodity price is too low to bear all the commercial costs, then it will bring a loss.
Pricing strategy, a very critical component of the marketing mix. Price is usually an important factor affecting the success of the transaction, but also the most difficult to determine the marketing mix of factors. The goal of enterprise pricing is to promote sales and profit. This requires enterprises to consider both the cost of compensation, but also to consider the ability of consumers to accept the price, so that the pricing strategy has a bidirectional decision-making characteristics of buyers and sellers. In addition,
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The price of many commodities, would rather be set at 0.98 yuan or 0.99 yuan, and not set to 1 yuan, is to adapt to the consumer to buy a psychological choice, mantissa pricing so that consumers have a "cheap" illusion, compared to 1 Positive reaction to promote sales. On the contrary, some goods are not priced at 9.8 yuan, and as 10 yuan, the same consumer to produce an illusion, to meet the consumer "cheap no good goods, good goods is not cheap" psychology.
2. Prestige pricing. This pricing method has two purposes: First, improve the image of the product to the price that its famous brand name; Second, to meet the status of buyers desire to adapt to the consumer's consumer psychology.
3. Habitual pricing, a commodity, due to similar products in the market to form a customary price, individual producers difficult to change. Price reduction is likely to cause consumers to doubt the quality, prices may be subject to consumer
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