Answer:
An apparel company has introduced three different varieties of shoes at different price points. [Product line pricing]
A company that produces shampoos have now introduced dishwashing liquids in the market. [Brand extension]
A shoe company sells its floaters at a price that does not even cover its production cost. [Loss leadership Pricing]
A chocolate company introduces its new range of chocolates at a discounted price for limited stock only. [Promotional pricing]
Explanation
Product Line Pricing: This strategy of separating products into various price categories may or may not have anything to do with their cost. It, however, achieves the effect of making one seem of a higher quality than the other.
Brand Extension:
Brand extensions serve the primary purpose of maintaining brand dominance and or relevance in the mind of the consumers.
Loss Leadership Pricing: This strategy is often used to attract the attention of customers. As customers compare the price of this product with similar/competing products, it can even create a mindset with customers that the business has very cheap products. This ultimately leads to more purchases and ultimately an increase in the bottom line of the business. This strategy is seldom used in isolation. The business almost always makes up for this loss relying on the increased volume of sales or by marking up other products slightly.
Promotional Pricing:
There are consumers who are very price sensitive. This strategy by the nature of its design almost always attracts their patronage. Depending on the creativity of the Marketing Officer, this can be used to increase consumer loyalty.
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