It's In The Brand

Types Of Pricing Strategies
Loss Leaders Promotional Pricing Premium Pricing Penetration Pricing Discount Pricing Economy Pricing Psychological
pricing
o Product sold at a
loss to attract
customers.
o Takes a hit on the
margins.
o A technique
which involves
reducing the
price of a
product or
service in a short
term to attract
more customers
as well as
increasing the
sales volume.
o For example; buy
1 get 1 free.
o Keeping the price
of a product or
service artificially
high in order to
encourage
favourable
perceptions
among the buyers
based solely on
price.
o Where the prices
of a product or
service is initially
set low to rapidly
reach a wide
fraction of the
market initiate
word of mouth.
o It works with the
expectation of
customers
switching brands
due to their lower
prices.
o A price which is
particularly
cheap or lower
that the normal
price in order to
get rid of stock.
o For example;
Next doing sales
every other day,
in order to get rid
of stock.
o A technique
which assigns a
low piece to
selected products.
o In retailers these
produces are core
items like
wardrobe staples.
o A theory that
certain prices
have a
psychological
impact.
o Retailers often
price their
products using
this method and
often expressed
as “odd prices” a
little less than a
round number
like, £19.99.
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