ways of setting the prices of products by Companies
Companies do choose many ways when they are setting the prices of their products. Some of these methods are aimed at appealing to the psychology of the customers. An Example of pricing is the odd-even pricing. This kind of pricing occurs when a company prices a cent a few dollars below the amount of the dollar following. For instance, instead of pricing an object $ 10.00 the company prices $9.99. All the same, the product will have more cost when taxes are added or even other fees.
Another type is the prestige pricing. This pricing occurs when products of higher prices are utilized to give an offering an image of high quality. This method is what many stores use, and people purchase them because of the image even though they might be a bit expensive. They are perceived to be of high quality because of the picture. An example is the price lining. For instance, many music stores use this method to sell products that are the same at different prices because of the image.
Price bundling is another method of pricing that occurs when selling different offerings at a price lower than the total amount paid by a customer who buys each of the offerings separately. An example is the Como meals and the value meals that are offered at different restaurants. Another pricing to consider is captive pricing. This is what firms use because the consumers need the products for particular occasions. Examples are when selling products for a movie or sporting activities. In the last year, I remember purchasing a phone at a very high price because it was new in the market. Later the cost of the same Phone went down; this way, I was affected by the skimming approach.Price bundling is another method of pricing that occurs when selling different offerings at a price lower than the total amount paid by a customer who buys each of the offerings separately. An example is the Como meals and the value meals that are offered at different restaurants. Another pricing to consider is captive pricing. This is what firms use because the consumers need the products for particular occasions. Examples are when selling products for a movie or sporting activities. In the last year, I remember purchasing a phone at a very high price because it was new in the market. Later the cost of the same Phone went down; this way, I was affected by the skimming approach.Price bundling is another method of pricing that occurs when selling different offerings at a price lower than the total amount paid by a customer who buys each of the offerings separately. An example is the Como meals and the value meals that are offered at different restaurants. Another pricing to consider is captive pricing. This is what firms use because the consumers need the products for particular occasions. Examples are when selling products for a movie or sporting activities. In the last year, I remember purchasing a phone at a very high price because it was new in the market. Later the cost of the same Phone went down; this way, I was affected by the skimming approach.Price bundling is another method of pricing that occurs when selling different offerings at a price lower than the total amount paid by a customer who buys each of the offerings separately. An example is the Como meals and the value meals that are offered at different restaurants. Another pricing to consider is captive pricing. This is what firms use because the consumers need the products for particular occasions. Examples are when selling products for a movie or sporting activities. In the last year, I remember purchasing a phone at a very high price because it was new in the market. Later the cost of the same Phone went down; this way, I was affected by the skimming approach.