Price – pricing strategies and influences

Common pricing strategies:
- Penetration pricing: low initial price to gain market share.
- Price skimming: high launch price for innovations or new versions.
- Competitive pricing: matching or slightly undercutting competitors.
- Cost-plus pricing: adding a markup to unit cost.
- Psychological pricing: setting price at £9.99 to seem cheaper.
Factors influencing pricing strategies:
- Technology: online tools allow dynamic pricing (e.g.airline tickets).
- Competition: high competition may force lower prices.
- Market segments: premium markets can accept higher prices.
- Product life cycle: prices may drop during maturity/decline stages.

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