List out some examples of pricing strategies.
(i) Competitive pricing.
(ii) Discriminatory pricing.
(iii) Psychological pricing.
(i) Competitive Pricing:
Under this strategy the price of the product is fixed at the competitive conditions. This method is used when the market is highly competitive and product is not differentiated significantly from the competitive products. It is also used when customary price level exists, as in the case of cold drinks.
(ii) Discriminatory Pricing:
It is also called dual pricing. Under this strategy, different prices are charged for the same product from different customers according to their ability to pay. It is usually followed in legal and medical services. It is possible to sell the same product at different prices in different market segments.
(iii) Psychological Pricing:
Here prices are fixed in a manner that they have i some kind of psychological influence on buyers. Odd pricing is used where prices are fixed as Rs.19, Rs.99, Rs.999, etc. Another example is price fixing where some product is offered at three different prices indicating about its quality variation.
