Question

Kotler and Keller discuss six price-setting methods. List and describe them

Answer 1

Six methods are

Price at premium : Price of product will keep as high and focus on elite group of customers. The customers will feel have a proud feel of having a high value or premium products.

Market penetration: in order to penetrate the market where many major players are there the products will be placed at low rate. This will attract buyers.

Economic pricing : values derived through econoies of scale ( by selling more number of units).

Price skimming method: OnitiallI the price will be kept as either low or high and based on the stabilisation stage they will set the desired price.

Bundle pricing: Bundling or clubbing produxpr so that customers will buy both products ( like toothpaste and brush) which can get along .here the companies will get sales of both products and customers will get products at reasonable rate.

Psychological pricing : It is mostly used in apparel industry and retail industry to attract customers ( like $ 4.99, $9.99 for shoes where cietomer have a psychological low price feel)