What are the different types of pricing strategies for a firm?
What are the different types of pricing strategies for a firm?
i)Predatory pricing : this is followed to eliminate any other competitors in the market.
ii)Premium pricing: where the price is kept high as in case of designer items so as it increase the reputation of the product and retain its goodwill
iii)Cost plus pricing : here the firm simply adds its estimated profit to the cost to fix its selling price.
iv)Skimming : Skimming is a pricing strategy adopted by firms under which goods are sold at high prices to capture their market value.
v)Price discrimination: this is practiced according to different classes of people which maybe as per their age,sex,occupation etc. Eg.higher price maybe charged for higher income group for the same product which maybe charged at a lower price for lower income group.