Different Pricing Strategies in Pakistan

Many different types of pricing strategies have been used over the years by Gillette on its product Mach 3 Turbo. Some of those pricing strategies which were used are:

Market Skimming Pricing: Basically this type of pricing is used when a business wants to extract maximum revenue from its customers for its new product. When Gillette introduced Mach 3 Turbo, it charged a high price for because it was an innovative product, that is to say it was a razor with three blades and many other extra features.

Product Line Pricing: In this type of pricing, the business sets steps between the product line items. For example, Gillette placed a big step between Mach 3 Turbo and Blue Two Plus. Although they belonged to the same product line, both these items were quite different to merit a significant price difference.

Captive Product Pricing: This type of pricing is used for those products which are used with a main product. In the case of Mach 3 Turbo, its razor blade cartridges are quite expensive compared to the main product. Consumers who may find the product itself cheap or moderately priced are shocked at the price of the razor cartridges.

Psychological Pricing: Psychological pricing is such a pricing strategy in which the price is used to say something about the product itself. For example, the high price of Mach 3 Turbo says that it is a good quality and an highly innovative product. Many consumers may buy it considering it a high quality product just because it has a high price.

Promotional Pricing: This type of policy is used to promote a product. Basically, in such type of pricing, the business may price products below list price for a temporary period in order to increase the sales of the product. Gillette has on many occasions reduced the price of Mach 3 Turbo slightly in order to increase its popularity.

Product Bundle Pricing: When businesses combine several products and then sell that bundle for e reduced price, it is called product bundle pricing. Again, Gillette has on some occasions combined Mach 3 Turbo with several razor cartridges in order to sell that bundle at a slightly lower price.

Price Changes:

If Gillette will increase the price of Mach 3 Turbo, it will decrease the sales of the product, but not to a great extent because there is no satisfactory competing product of Mach 3 Turbo in Pakistan.
A price decrease may give a confused reaction. Some consumers may welcome the decision and may buy more of the product but if Gillette reduces the price significantly, that may indicate to the consumer that there is something wrong with the product and they may not buy it. So, these are all the ways different pricing strategies may affect the image and popularity of a product.
What do you think about this analysis of mine?