Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Explain the term Psychological pricing?
Careful pricing of a business's products and services is important to create sales, please customers and ensure long-term success. Implementing a well-considered pricing strategy to research competitors, understand the target audience, and keep up to date with market trends and changes.
Psychological pricing is a pricing strategy that uses specific techniques to create a mental or subconscious mind in consumers. It integrates sales strategies with the price. It is a type of pricing that aims to attract the emotional side of a customer. These pricing methods are not new, and these strategies have been applied throughout history by potential vendors to influence customer behaviour. Before price tags, store clerks need to learn the art of hogging to create mutually beneficial deals for customers and the store. After the price tags went up, marketers used the power of price to get the same results. There are two forms of psychological pricing that includes:
- Charm Pricing
- Prestige Pricing
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