Psychological pricing

want to find out how they promote themselves and if they do any similar pricing and promotion strategies like the small businesses. The two small- scale businesses I have chosen are Tennessee Express and Pineapple Pizza because they are local and I regularly shop there. These two businesses are categorized as a small business…

Question 2 Penetration Pricing: a Penetration pricing strategy is the strategic application practice of settling an initial price that is far lower than the projected standard price for the product. The strategy is essentially also know as a price war. This strategy goes for the lowest and deepest price cut, to ensure that the product at any given time in the market has the lowest price compared to its competitors. The business would only use this strategy if they need an exceptionally low price…

product (Ahmad & Vays 2011). Pricing is a crucial strategic variable due to its direct relationship with the company’s goals and its interaction with other marketing mix elements (Yesawich 2004). Pricing enables companies…

Price skimming, also known as market skimming, is a product pricing strategy where then firm charges a high initial price when introducing a product. With time, as the demand of customers is satisfied, the firm lowers its price a bit attracting those who are more price sensitive. This strategy is useful when there are enough customers who are willing to buy the product at a high price, when the high price keeps competitors from entering the market, lowering the price won’t have a huge impact on…

Pickle Lip Balm ---- Pricing Plan Pricing Strategy  Status quo pricing I choose Status quo pricing strategy, which means that a product should charge a price identical to or very close to the competition’s price. Since there are many different kinds of lip balm in the market, the pickle lip balm still belongs to lip care category so that it is important to consider competitor’s price.  Penetration pricing Then penetration pricing strategy can also be a choice, which a firm charges…

Pricing Cues The textbook author included a case about the different pricing cues. While reading this case I learned that prices ending in 9 not only show signs of a bargain but it can also increase demand. The case author says in one study involving women’s clothing, raising the price of a dress from $34 to $39 actually increased demand by a third. I did not know raising a price could also increase sells, I guess that’s the power of 9. On page 318, there is a table showing the different…

Product - The first aspect of the marketing mix is the product itself; Broom House Farm’s, farm shop stocks a wide variety of product. They breed, rear and sell 100% pure Aberdeen Angus Beef, Lamb, Mutton and Rare Breed British Saddleback Pork, hams, sausages and bacon. The organic Aberdeen Angus meat is key to marketing at Broom House Farm. Jane and Mark chose this breed for the hardiness, size, ease of marketing and their ability to manage in the cold conditions and in the winter. This…

high prices with high quality – as the saying goes, “You get what you pay for.” Adidas uses skimming pricing for new products and competitive pricing, acknowledging their competitors such as Nike and Reebok. Adidas also uses psychological pricing where price are set at $9, $89, $99, $189, $299, to perceive as being at a lower price. If the organization undercuts its competitors pricing excessively, it will not be appealing to stockholders. If the organization’s product or services are…

Scrumptious Smoothies include sampling the product, offering coupons and discounts, and to have a health conscious local celebrity endorse and promote the product. Simply Scrumptious Smoothies will encourage feedback from the consumer on its products, pricing, and promotions to insure the success of its…

Standards. For that reason, the business will aim to have Safety accreditation completed in the next six months and Quality accreditations completed within twelve months. Due to the business trying to ensure it survives the first twelve months, its pricing focused on the growth (Kotler, et al., 2013, p. 495) of its customer base and building brand awareness. This can sacrifices profit for market share. The next major goal is to ensure the business breaks even each month and moves towards making…