Pricing Strategies

2. a tactic in which products or services are priced just below a round number (usually ‘.99’ or ‘.95′). It leverages consumers’ psychological tendency to perceive such prices as significantly lower than they actually are because the first digit is smaller (think: $3.99 vs. $4.00).
3. is selling at a high price in order to create a feeling of superior quality and social status
4. a product is sold at a price below its market cost[2] to stimulate other sales of more profitable goods or services
10. involves pricing items in multiples, such as 10 for $10.
11. a pricing strategy devised to attract a large volume of customers to a one-time purchase of a lower-priced core (or main) product that requires accessory (or captive) products for the main product to function
13. uses a low introductory price with the goal of building a strong customer base. The low price also discourages competition.
14. a method where businesses list a higher standard price (designed for credit card payments) and offer a lower, discounted price to customers who pay with cash
15. a common retail promotion where purchasing one item allows a customer to receive a second item for free or at a discount

1. a strategy where businesses offer an essential product at a set price while presenting customers with optional or accessory products at additional costs
5. suggests that buyers are more sensitive to certain ending numbers. Studies have shown that consumers tend to round prices ending in odd numbers to the next lowest monetary unit, thus perceiving the prices as lower than they actually are
6. are reductions in price based on the purchase of a large quantity.
7. setting product prices based on competitors' rates to stay relevant, or displaying prices side-by-side to highlight value
8. are used for selling seasonal merchandise out of season
9. a retail strategy promising consistently low prices on products, avoiding frequent sales, coupons, or promotions
10. which is used when a product is new and unique, starts with a high price to recover the costs involved in developing the product. Then as more competitors enter the market with similar products, the price is dropped
12. involves offering different levels of prices for a specific category of product based on features and quality