204 11.4 Common Pricing Strategies
Learning Objectives
- Explain why a company would use skim pricing
- Explain why a company would use penetration pricing
- Explain why a company would use cost-oriented pricing
- Explain how price discounting is used and why it can be effective
- Compare common pricing strategies
Thus far we have discussed many pricing considerations: the impact of pricing on value perceptions, the effects of elasticity, and approaches to common pricing objectives. In this section we are going to introduce some very specific, yet standard pricing strategies that organizations use to bring these concepts together. They do not replace the information that we have discussed to this point, but they are important to understand.
Learning Activities
- Reading: Skim Pricing
- Reading: Penetration Pricing
- Reading: Cost-Oriented Pricing
- Reading: Discounting Strategies
- Self Check: Common Pricing Strategies