Question

As a marketing manager, which pricing method would you personally prefer to deal with? Why? If the average price were to stay the same, which would you prefer:

(a) For firms to set one price and not deviate or
(b) To employ slightly higher prices most of the year, but slightly lower discounted prices or specials for certain occasions?

A. (a)
B. (b)
C. No preference
D. Both options are equally preferable

Answer 1

I would personally prefer option (b) which is employing slightly higher prices most of the year with slightly lower discounted prices or specials for certain occasions. This pricing method can create a sense of exclusivity and urgency, attracting customers and increasing sales during those occasions.

Step-by-step explanation:

As a marketing manager, whether to prefer a pricing method of setting one price and not deviating or employing slightly higher prices most of the year with slightly lower discounted prices for certain occasions would depend on various factors.

If the average price were to stay the same, I would personally prefer option (b). Employing slightly higher prices most of the year with slightly lower discounted prices or specials for certain occasions can create a sense of exclusivity and urgency, which can attract customers and increase sales during those occasions.

For example, many retailers use this pricing strategy to boost sales during holidays or special events. They offer discounts or special deals to incentivize customers to make purchases. Additionally, this pricing method also allows for greater flexibility in responding to market conditions and competition, as the prices can be adjusted based on demand and other factors.