PRICING STRATEGIES

Pricing Strategies



Pricing Strategies

Background

The purpose of pricing strategies is to: (a) appeal to market demand, (b) regulate the supply of quality products and services, and (c) stabilize financial and status positions of the brand. The term pricing strategy, as used in this paper, is defined as policies or programs designed to reduce the sticker price in order to bolster brand image and target its potential customers and or revenues. These strategies became increasingly sophisticated during the 1980s and 1990s (Nagle, 1990, p.271).

Some strategies that institutions used were: (a) proportional cost pricing, (b) externally indexed pricing, (c) peer ...