Pricing Strategies

Pricing Objectives

• survival
• maximum current profit
• Maximum market share (market penetration)
• New product pricing
• Product quality leadership
• Partial cost recovery

Pricing Strategies Usually Depend on

• Product, service or experience
• Competitor's price of similar or alternative product
• Target Market
• New Product Pricing Strategies
• Psychological charging
• Product-line pricing strategy

New Product Pricing Strategies

• Market-skimming pricing
• Market penetration pricing

Psychological Pricing

• Reference pricing
• Bundle pricing
• Multiple Unit pricing
• Every day low pricing

Product line Pricing Strategies

• Captive: products that must be used along side other products, the main product is cheaper than the other products.
• Premium: Pricing different models at different prices depending on their quality and features