Question

What are the five major categories of pricing strategies? Give two examples of each category. Note: my subject is INTRODUCTION TO BUSINESS.  

Answer 1

Price :- price is value of any product and service that is result of complex calculations, Risk taking abilities, research etc. Price strategies process of ability to pay, market conditions etc.

Five major category of Pricing strategy are:-

1) :-new products price strategies:-these pricing strategy is follow when new products are introduced in market.

Example :-a) skimmed pricing strategy (b) penetration pricing strategy

2):-diffrential pricing strategy:- under these strategy those price are comes which are occur when different price strategy is used at different time.

Example(1) periodic discounting price strategy (2) random discounting Price strategy

3) :- psychology Pricing:-under these strategy psychology price are difined that certain price have it's on psychology impact

Example :- price of any products is $3.99 but due to psychology customers treat it $3 roller not4 dollar

4) :- products line pricing:- it is that strategy in which product are reviewing , different Price are set for multiple products that company give them in coordination with one another.

Example:- selling products at low rate to attract customers and derive sales of other products is example of it.

5) :- premium Price strategy:- under these strategy company wants to charges high Price of their products in market then their competitors

Example:-rolex and Honda are good example of this strategy under which company increase -their price higher then their competitors.