Pricing Strategies
Psychological Pricing:
prices ending in – .99 sounds like you are getting a bargain
prices like 50.00, 75.00 100.00 – adds a sense of quality to the product.
some products (like electronics) people want to keep under a given price point ( like $200 or $300), so the prices in Canada and the US will be very close to each other despite the exchange rate.
Geographic Pricing:
prices in different locations – Canada vs the US or Ontario vs B.C. Price may reflect the added cost of transportation of local economic situations.
Premium Pricing;
Prices are set higher than the competitions prices. The pricing in level is supported by the customers because of a perceived added value. The pricing strategy is often used in luxury items. First class airline fares, ipod Touches, Luxury hotel rooms.
Assignment
There are many other pricing strategies that can be used. Find 5 more pricing strategies and give examples of products that using the strategy. Including relating quality and price.