Pricing Strategies

The price can be referred as the amount the customer will be paying for the product or service. The price is such as important as the product, because it defines the quality, profile, etc. of the company. It has to have price elasticity for a customer demands and because of the complements of the product or service. When you’re setting the price you must be aware of what the customer’s demand and need.

Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organization’s pricing policy will vary according to time and circumstances (The Times 100).

There are 7 pricing strategies which are:

• Penetration pricing

 This strategy is based on firsts sells, they first give the product in low price so that it amuses the customer; later on they could increase the price.

• Optional pricing

 The organization will be selling extras along with the product to maximize the turnover.

• Premium pricing

 It is used in higher price to show and represent the exclusiveness of the product.

• Competition pricing

 Setting the price according to the competitors, can be lower, higher or same price.

• Psychological pricing

 First the seller will be using psychology of price to make it the position into the market.

• Bundle pricing

 Bundle a group of products to be reduced as 2X1.

• Skimming pricing

 First it is in high price and then slowly lowers it for being available in a wider market.

Bibliografía

The Times 100. (s.f.). Recuperado el 08 de 09 de 2013, de http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html#axzz2eKIbqiOV

http://www.learnmarketing.net/price.htm

...