you must have a very popular product, of which you will price very low.
Bid Pricing Cost Plus Pricing Customary Pricing Differential Pricing Diversionary Pricing Dumping Pricing Experience Curve Pricing Loss Leader Pricing Market Pricing Predatory Pricing Prestige Pricing Professional Pricing Promotional Pricing Single Price for all Special Event Pricing Target Pricing
The concept behind this frequently used pricing objective is to simply match the price established by an industry leader for a particular product.
Follow-the-leader pricing is a pricing strategy where a company sets its prices based on the prices set by a dominant competitor in the market. This approach is often used in oligopolistic markets, where a few firms have significant market power and closely monitor each other’s pricing decisions. By aligning their prices with the leader, firms aim to maintain market share and avoid price wars. However, this strategy can limit price competition and innovation within the industry.
Loss leader pricing means when they are sold below the cost price which could encourage the customers to buy other products sold by the business
Quadro Communications Ltd. is a leader in the communications world for phone, television and internet. They are located in Ontario, Canada and provide bundle pricing for the use of mobility/phone, digital TV and internet.
psychological odd-even prestige price lining demand back ward bait leader value in use
Avaya is currently the indsutry leader in telephony services. Check with your local Avaya rep for pricing information.
The pricing strategy being used here is likely a form of aggressive pricing or competitive pricing. This approach focuses on setting prices lower than competitors to attract customers and gain market share. By emphasizing the idea of "crushing competition," the company aims to position itself as a cost leader in the market, appealing to price-sensitive consumers.
Leader pricing involves setting a low price on a popular item to attract customers, hoping they will also purchase other higher-margin items. Bait pricing, on the other hand, advertises a low-priced product to lure customers in, but often leads to upselling or the availability of higher-priced alternatives. Both strategies aim to draw customers into a store or platform, impacting the marketing mix by influencing product positioning, pricing strategies, and promotional tactics. Effective use can enhance customer traffic and overall sales, but risks customer dissatisfaction if perceived as misleading.
An arbitrage pricing theory is a theory of asset pricing serving as a framework for the arbitrage pricing model.
A low-cost price leader can enforce its leadership by maintaining aggressive pricing strategies that create a perception of sustained low prices, making it clear that any attempt by rivals to raise prices would lead to significant market share loss. By consistently undercutting competitors, the leader implicitly threatens to engage in price wars, forcing rivals to either accept lower profit margins or risk being driven out of the market. This strategy not only deters competitors from pursuing aggressive pricing but also reinforces the leader's dominance in the market.
transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,