Product Pricing
What are Product Pricing Strategies?
A method businesses use to help determine the price of their products or services, while maximizing profit.
What is the main purpose of running a promotional pricing campaign ?
The main purpose is to boost sales quickly
What is bundle pricing?
When you get multiple items for 1 price which is normally cheaper than getting all the items separately.
This can de-influence people to buy the extras or to buy the core product at all.
What is Dynamic pricing?
A strategy where prices change based on demand, competition, time, of other factors.
True/False: Pricing a product at $20 makes people want to buy it more than if its $19.99. Why?
False because $19.99 make the price feel/look more affordable while it is basically the same price.
How do you decide which products should be discounted during promotion?
By focusing on products with high inventory, seasonal relevance, or items that can attract new customers to your store
How many pricing strategies use bundling products to get more revenue?
2
Why does selling extra products separately draw people to it?
Because it looks like everything is more cheap. and you only pay for what you want.
Why is penetration pricing risky?
Penetration pricing, starting with a very low price to gain market share, which can be risky because it may reduce the profits initially and make it hard to raise the price and gain customers
What factors should you consider when setting the price of a new product?
Factors:
cost of production, competitor prices, market demand, Business goals, Target audience and willingness to pay, etc.
What are some common types of promotional pricing?
Common types are BOGO(F) (buy one get one free), free shipping, limited-time flash sales, and discounts
What is a benefit of putting more items for one price?
People buy more than they would have because it feels like a deal.
How does selling extras separately help boost profit?
Customers often spend more on extras because they feel like they are personalizing their product.
What is Premium pricing?
Involves setting a high price in order to have superior quality and luxury.
What is a risk of using a price skimming strategies?
Loosing customers, cheaper alternatives, and damaging customers loyalty
How can limited-time promotions create a sense of urgency?
By making the buyers feel like they might miss out if they don't act quickly, encouraging faster purchasing decisions.
How can bundling be bad?
It can make people steer clear of those products since they can feel forced to buy more than they want.
What industries benefit most from selling things and selling extra products with it?
Technology and Automotive because they can sell you the bare minimum and sell every extra separately and for expensive.
How does prestige pricing work?
By setting high prices to create an image of exclusivity and quality
Hw does competitive pricing help business in a crowded market?
It helps by staying relevant by aligning their prices with competitors and making their product appealing without being too expensive or underpriced.
What is the difference between promotional pricing and everyday low pricing?
Promotional pricing is temporary and used for boost, while everyday low pricing is consistent and ongoing.
What pricing strategies use bundling products to get more revenue?
Bundle Pricing, Multiple-unit Pricing
How can selling separate improve customer satisfaction?
It gives customers more control over their purchase.
What is the main benefit of freemium pricing?
The main benefit is attracting a larger user base and converting free users to paying customers over time