Pricing Strategy
Jump to navigation
Jump to search
A Pricing Strategy is a business strategy for setting item prices.
- Example(s):
- See: Service (Economics), Product (Business), Price Prediction, Price Elasticity, Yield Management.
References
2020
- (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/pricing_strategies Retrieved:2020-12-9.
- A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy.
Pricing strategies determine the price companies set for their products. The price can be set to maximize profitability for each unit sold or from the market overall. It can also be used to defend an existing market from new entrants, to increase market share within a market or to enter a new market. Pricing strategies can bring both competitive advantages and disadvantages to its firm and often dictate the success or failure of a business; thus, it is crucial to choose the right strategy.
- A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy.