Question

Outline five pricing techniques

Answer 1

1. differential pricing strategy

2. competitive pricing strategy

3. productive line strategy

4. psychological pricing strategy

5. distribution pricing strategy

Answer 2

Explanation:

Outline five pricing techniques:

a) Pricing at premium- Premium pricing is where businesses set a price which is higher than their competitor.

b) Costing for penetration of market – Strategies for penetrating aims in attracting purchases by giving them lower prices over goods and services.

c) Economy based pricing – Businesses use this for attracting the consumers who are price conscious.

d) Price based skimming – Here business enhances their sale on the new products and services and offer a rate as an introductory pricing.

e) Psychology based pricing-  Psychology based pricing is where technique are used for encouraging consumers to respond in an emotional one rather than a logical one.