Discuss the different pricing strategies a seller can use along with the key features of each. Provide examples of current marketplaces where these types of pricing arrangements are shifting dramatically.
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Write My Essay For MePricing Strategies
The different pricing strategies are penetration pricing, premium pricing, economy pricing, and price skimming.
Penetration pricing is mostly used by new startup businesses so that they can get their foot into the | PLACE YOUR ORDER NOW AT writtask.com | pricing involves a situation where a business opts to offer low prices on its products. Premium pricing is where a business opts to set prices that are higher when compared to | PLACE YOUR ORDER NOW AT writtask.com | a type of pricing that a new business offering luxury products can use and do well with the same. It is mostly used when one offers perfect and unique products | PLACE YOUR ORDER NOW AT writtask.com | is mostly applied when operating as a discount | PLACE YOUR ORDER NOW AT writtask.com | of pricing is put in place when targeting consumers who are | PLACE YOUR ORDER NOW AT writtask.com | is a form of pricing where the price of a product is kept high when being introduced into the | PLACE YOUR ORDER NOW AT writtask.com | with the intention of capitalizing on the sales of new products that are introduced into the market.
Penetration pricing was used by Netflix when it was launched in | PLACE YOUR ORDER NOW AT writtask.com | has since then changed as it got its position in the market.
Vita Coco UK has been making use of | PLACE YOUR ORDER NOW AT writtask.com | coconut water, and it has set a premium price regardless of the competitors that come into the market.
Pound land is a company that has made use of economy pricing to | PLACE YOUR ORDER NOW AT writtask.com | of its products are set at 1 Euro (Dockner & Jørgensen, 2008).
Apple is a well-known company that has been using the price skimming | PLACE YOUR ORDER NOW AT writtask.com | company attached a high price on it in as much as it was still a | PLACE YOUR ORDER NOW AT writtask.com | helped in ensuring that consumers got value for what they paid for.
References
Dockner, E., & Jørgensen, S. (2008). Optimal pricing strategies for new products in dynamic oligopolies. Marketing Science, 7(4), 315-334.
Dunsby, M. (2019). “Pricing strategies: Which is best for your business?” Startups. Retrieved 30 Mar 2020 from: https://startups.co.uk/pricing-strategies-price-skimming-penetration-pricing-and-premium-pricing/
Lehmann, S., & Buxmann, P. (2009). Pricing strategies of software vendors. Business & Information Systems Engineering, 1(6), 452.
Popescu, I., & Wu, Y. (2007). Dynamic pricing strategies with reference effects. Operations research, 55(3), 413-429.
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