Classification of Pricing Strategy
We differentiate pricing strategy into 3 segments. Those are given below:
Creaming: Creaming is a pricing technique that allows the goods to be sold at a minute higher price as a result the sales are quite required to break even. Generally, it is the technique to gain higher profit by selling at a higher price. In that case, you have to sacrifice high sales. In this, the cost of investment is normally covered and refundable. This strategy is usually suggested for a limited duration.
Decoy pricing: When the seller offers three or more three different products, where two out of those three have similar prices, the decoy pricing strategy turns up as effective. Usually, as a result, the two same-priced products have become more expensive than the 3rd one. This very technique makes the Sales high because it would provide the customer's options of similar price.
Freemium: It is another very productive technique of pricing strategy where the company would come to offer any products or services by imposing a good premium in the amount for the main product. If you have a look at this very term you can figure out the word ‘freemium’ is a combination of two words, ‘free’ and ‘premium’ which carries irony.
Various Strategies of Pricing
Sometimes it seems very difficult for any organization to maintain a productive and beneficial pricing strategy. So it is very important to determine a specific and consistent pricing strategy. In this regard, you can undoubtedly trust on BookMyEssay as our skilled academic experts are always able to provide various pricing strategies with your Pricing Strategy assignment help. Here we would like to describe our different pricing strategy case study help categories.
- Competition pricing: It is based on the prices which are generated by the competitors in the market. This strategy is very productive for those who are dealing with the products.
- Penetration pricing: Penetration pricing implies the strategy that is used for an organization to penetrate their new products in the market. By this strategy, the producers can increase any product by introducing the product.
- Line pricing: Line pricing is usually used by those kinds of manufacturers who want to maximize their sales by yielding more than one good.