Question

Read the article 10 Pricing Strategies That Can Drastically Improve Sales  (Links to an external site.)

2. Locate an example of any one of the Pricing Strategies and post a link to the product in the forum.

3. Explain the advantages of this Pricing Strategy and the disadvantages of this Pricing Strategy.

4. Answer the following question: have you ever bought a product that was priced using this strategy? Why or why not?

Answer 1

After researching article on pricing strategy I would find that Different Level of Pricing Testing Strategy is more relevant in todays scenario. Here you put the comparative products similar but somewhat difference either in packaging or serving which affect their pricing as well.

Answer 2 -

The example of it is Mobile Phones - Apple Iphones

Here you would see that low configuration mobile with lowest price, highter than moderate configuration at ver good pricing and higher configuration at little higer pricing than moderate one. This way it encourages people to think about moderate phone to buy and lure them into buying with higer configuration phone paying more for just few more features added. This way companies add more profitability to their books.

Answer 3 -

The advantage of pricing strategy is that profitability of the company is higher. People are diverted to pay more for the same products thinking that other has good quality hence building brand into peoples mind.

In disadvantage, soon the competitor find about pricing strategy, it can copy and throw a challenging response. This would deteriorate the company sales and can lead to negative marketing about the company products & sales ultimately is hit. Profit may be impacted for the same and hence credibility is lost in the market.

Answer 4 -

I bought an Iphone of the best configuration however it was not required by me and hence paid up more for features that I actually never required. I fall into trap of this strategy as I was not aware of such marketing strategies and fell trap to it. Later on when I realised that I paid up more for features that I actually do not require, I understood this concept and then never fell into this trap agains and bought what was required only.