Question

Apple adopted 4 pricing strategies

• Marketing skimming pricing
• value-based pricing
• product line pricing
• psychological pricing

Question: How these pricing strategies matches the positioning strategy of apple?

Answer 1

The pricing of the product has to be done according to the position of the product in the market and in the minds of the consumers. So since Apple phones come in the category of market of luxury products and is highly valued by the clients, their pricing has to be done at high range.

Market skimming pricing policy used by Apple lets this company set high prices for the products when they are launched in the market. This helps the consumers to know about the high quality of the product and makes the company have high position in the market.

Value based pricing used by Apple helps it to maintain high prices in the market because the products of this company are highly valued by the consumers and have got good position in the market.

Product line pricing strategy helps the Apple company to have products of different range under the same brand name. This will increase the sale of the products as more people who value the Apple products but can't buy it will be able to buy it. This will help the company to maintain good position in the market.

Psychological pricing strategy adopted by Apple helps the consumers to have psychology that the high priced products of this company have good quality and features. This will increase the value of the products of this company and will help it maintain high position in the market.