3. Premium
Strategy
(product:high/price:
high)
Premium pricing, also known as "image pricing" or "prestige
pricing," means pricing a product above normal market value so that
customers think a product or service is more valuable than similar
offerings.Although the price may dissuade some buyers, premium
pricing proponents believe that the higher cost will create a market
perception that will ultimately bring in more revenue.
Example : Prada can continue
to charge a premium price
because their entire brand
image is based around class.
7. HighValue
Pricing
Strategy
(product:high/price:
medium)
Attractive pricing that is ideal for market penetration. Here the
price of a product is initially set low to rapidly reach a wide fraction
of the market and initiate word of mouth.
Example :Many home phone, cellphone, cable and satellite
providers offer a discounted rate for a period of time, such as your
first six months of service, to get you to switch to their service.
After your discount period has ended, the price increases
significantly, but the company hopes you have become used to its
service and won't go through the trouble to change to a different
company.
10. SuperbValue
Strategy
(product:high/price:
low)
Waitrose's objective was more than survival but to recapture
customers, or stop them switching.Their Essential range was
launched as the UK hit the recession to re-capture shoppers
buying from discount stores, so they reduced the prices of their
basic food.
11. Overcharging
pricing
strategy
(product:medium/p
rice:high)
With overcharging, the company overprices its product in relation
to its quality. In the long run, customers will likely feel "taken,"
complain to others about it, and will stop buying the
product. Thus, this strategy should be avoided.
True bargain: may be a temporary special to raise revenue or to
move discontinued items. "Inventory sale" strategy.
Example- Earlier Iphone charger and the earphones used to be
different and so it was overcharged because there was no other
way to charge the Iphone or use any other earphones.
14. MediumValue
strategy
(product:medium/p
rice:medium)
Price and value are in balance, exclusive of other factors. "Square
deal" pricing strategy.
Example-Telecom operators- they are providing services in
accordance with the needs of the customers and customers feel it
as a perfect deal.
18. GoodValue
Strategy
(product:medium/p
rice:low)
A pricing strategy which attempts to offer customers a desirable
combination of features and benefits at a healthy price point.
"good value pricing" refers to any pricing strategy that tries to split
value creation somewhat evenly between a firm and its customers.
This is in contrast to raising prices as high as consumers will pay or
pushing them as low as the company can afford.
(more profit/less loss)
For example:
subway
walmart
22. Rip-Off
Strategy
(product:low/price:
high)
Rip-off pricing refers to a strategy in which a customer
is overcharged for something, or receives goods or services not of
the quality expected for the price.
A ripoff is usually distinguished from a scam in that a scam
involves wrongdoing such as fraud; a ripoff may be considered
excessive, but not illegal.
Illustrations:
Poor quality cosmetic products sold
at high prices.
Beats by Dre head phones ($14/>$100)
25. False Economy
Strategy
False economy pricing refers to a strategy in which a customer
is charged more compared to the quality that is provided.The price of
the product will be medium but the quality that is provided will be low
compared to price charged
A false economy is an action that saves money at the beginning but
which, over a longer period of time, results in more money being spent
or wasted than being saved for the customer.
Illustrations:
Lava Mobiles
Celkon Mobiles
28. Economy
Strategy
(product:low/price:l
ow)
This is a similar low price strategy involving setting a low initial
price to capture market share initially, then when the market
grows and costs decrease, costs are reduced further, maximum
sales growth objective
Examples
