Question

What pricing strategies do you think would be most successful for this type of product? Describe at least one strategy that would work well for this product, and explain why you believe it would work. TIP: Pricing strategies include psychological pricing, unit pricing, product line pricing, promotional pricing, penetration pricing, and price skimming. (1-6 sentences. 4.0 points)

Answer 1

g. What pricing strategies do you think would be most successful for this type of product? Describe at least one strategy that would work well for this product, and explain why you believe it would work. TIP: Pricing strategies include psychological pricing, unit pricing, product line pricing, promotional pricing, penetration pricing, and price skimming. (1-6 sentences. 4.0 points)

I would do promotional pricing because if I can get customers to get interested in the product quicker, it would be better in the long run. Promotional pricing is when there is a short time of a lower price to increase the volume of sales. Which is why chips/salsa/etc go on sale around the biggest sporting events.

Step-by-step explanation:

Answer 2

I'm not 100% but I'm pretty sure it's psychological pricing. That is when a price is normally odd (i.e $19.99) in hopes of having a certain psychological effect.

Penetration pricing is when a price is set low in the beginning to penetrate the market and it eventually comes up.

Promotional pricing is when there is a short time of a lower price to increase the volume of sales. Which is why chips/salsa/etc go on sale around the biggest sporting events.

Price skimming is when the price starts high and then comes down over time. Generally this is used as a tactic to make you think the price came down a bunch and you're now getting a great deal.

Sources - In school for Business Administration and a supervisor at a grocery store