Even though the book doesn't talk about Economy Pricing and Premium I thought it's good if we know it.
Premium Pricing:
High price, High quality
This is usually seen with luxury products and services.
Cruises, hotels and air travel.
Penetration Pricing:
Low price, High quality
This pricing strategy sets a low price inorder to attract a large number of sales.
Dell, France Telecom, Sky TV
Economy Pricing:
Low price, Low quality
The strategy is used for goods that have low consumer involvement.
Salt, soup.
Skimming Pricing:
High Price, Low quality
This strategy sets a high price for a good new to the market attracting a large profit even if sales are low.
Sony's HDTV, Digital watches.
3 comments:
This would help me a lot for the mega quiz. thanks
anytime :D the best part is u have the examples ready made
hmmm....... i'm a bit confused. How do you define quality here? I'd say if you included the intended approach for these pricing systems it'd be great. For example Market-skimming prices (like you said) intend to generate high revenues even if the sales are low and penetration pricing intends to increase market share. I'm still missing the quality part. And also the "purpose" of premium and economy pricing, like you stated for the other two.......... thnx
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