Pricing Strategy ...

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There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use.

Contents
1 Competition-based pricing
2 Cost-plus pricing
3 Creaming or skimming
4 Limit pricing
5 Loss leader
6 Market-oriented pricing
7 Penetration pricing
8 Price discrimination
9 Premium pricing
10 Predatory pricing
11 Contribution margin-based pricing
12 Psychological pricing
13 Dynamic pricing
14 Price leadership
15 Target pricing
16 Absorption pricing
17 Marginal-cost pricing
18 References

[edit] Competition-based pricing
Setting the price based upon prices of the similar competitor products.

Competitive pricing is based on three types of
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The idea of selling at a loss may appear to be in the public interest and therefore not often challenged. Only when the leader pushes up prices, it then becomes suspicious. Loss leadership can be similar to predatory pricing or cross subsidisation; both seen as anticompetitive practices.

[edit] Market-oriented pricing
Setting a price based upon analysis and research compiled from the targeted market. Also with the cost price.

[edit] Penetration pricing
Main article: penetration pricing
The price is deliberately set at low level to gain customer 's interest and establishing a foot-hold in the market.[2]

[edit] Price discrimination
Main article: price discrimination
Setting a different price for the same product in different segments to the market. For example, this can be for different ages or for different opening times, such as cinema tickets. Market orientated pricing is also a very simple form of pricing used by very new businesses. What it involves is, setting the price of your product/service according to research conducted on your target market.

[edit] Premium pricing
Main article: Premium pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price. The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy

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