Pricing

Some companies will swoop into a market with radically low prices as a strategy of attracting new clients in a competitive bid for market share. This is called a penetration…

Price skimming is a pricing strategy that entails pricing a product or service at a high price when it first enters the market in order to ‘skim’ portions of the…

Purchasing anything entails paying a price. But, what is exactly a price? Prices may seem so trivial. It’s what you pay, isn’t it? But is that really all there is…

Various pricing approaches and strategies are available to the marketer. How do you find the right pricing strategy for your products? At first, it is essential to get an overview…

The term psychological pricing refers to the use of an understanding of consumer thought processes to determine appropriate prices for products. How do psychological pricing strategies work – and what…

Reference pricing is a pricing strategy that uses a pre-defined reference point to set the price for a product. In the following, we will explore the role of reference prices…

Value-based pricing is, as the name suggests, based on the value a good provides to a customer. The value at the heart of pricing strategy is economic value (or exchange value), not…

The term value commonly refers to the overall satisfaction that a customer derives from using a product or service. Economists call this use value—the utility gained from the use of…

Due to the many special considerations surrounding the pricing of services, traditional pricing strategies such as penetration pricing, competitive pricing, and premium pricing may not be suitable. In other words,…

Businesses can use creative pricing strategies to maximize revenue. Especially in challenging economic times, creative pricing strategies may help you to increase profit while your competitors suffer from revenue drops.