With the ever-increasing competition in the retail market, competitive pricing is fast becoming one of the most sought after pricing strategies. When it comes to a competitive pricing strategy, the purchasing behaviour of customers is an important criteria. Once the product is part of a mature ma...
What is Competitive Pricing? Competitive Pricing is a method by which companies set the prices of their goods and services relative to the market rate set by competitors. Therefore, competitive pricing—or “competition-based pricing”—is a strategy predicated on the notion that a business must ...
Many businesses use pricing strategies as their first, and primary, competitive strategy. However they often don't move past cutting prices and using better, more effective strategies. When writing a marketing plan, you need to focus on best-fit strategies for your specific business. Consider spec...
A competitive pricing strategy is not the only pricing strategy that businesses need to consider. There are other pricing strategies like premium pricing, economy pricing, price skimming, bundle pricing, psychology pricing, etc. The choice of pricing strategy must suit the exact needs of your busine...
business, while the attributes of a product remain similar. This type ofpricing strategyis generally used once a price for a product or service has reached a level of equilibrium, which occurs when a product has been on the market for a long time and there are many substitutes for the ...
This pricing strategy is very effective when you have additional items that add functionality or extend the life of the core product. Take printers, for example, which are often on sale or priced very affordably. The catch comes once the ink runs out. Refills are expensive relative to the ...
Competitive pricing is a strategy for keeping and attracting customers. Review the different methods of competitive pricing and their benefits and drawbacks.
Another noteworthy strategy is value-based pricing, which focuses on determining the perceived value of a product from the customer’s perspective and enhancing that value. By asking customers, “How much would you be willing to pay for product X?” valuable insights are gained, which can be ...
Cases in Product Policy , Pricing Tactics , and Competitive StrategyWilliam, J
How can pricing serve as a means of strategy or as a competitive tool with buyers?Pricing Strategies:The different firms in the industry compete to acquire a substantial market share. Indeed, it is upon the firms to ensure that they make use of reliable competitive strategies to...