2023 2024 EduVark > Education Discussion > General Discussion


  #1  
February 8th, 2016, 11:28 AM
Unregistered
Guest User
 
Premium pricing strategy

What do you mean by Premium pricing strategy, can you here tell me something about it , as my younger brother asking me for it
Similar Threads
Thread
What Is National Pharmaceutical Pricing Authority
IRDA Motor Third Party Premium
Liquidity Premium Theory MBA
IRDA TP Premium-16
ECGC Premium Packing Credit
ECGC Premium Meaning
Pay SBI Life Premium
University lofts at DU Pricing
IRDA Third Party Premium
IRDA TP Premium-15
Top Premium Vodkas
X1 Pricing
Oracle Database Pricing
ST PNBE Premium
UIIC Motor Premium Chart

  #2  
February 8th, 2016, 11:51 AM
Super Moderator
 
Join Date: Mar 2012
Re: Premium pricing strategy

Price is the value that is put to a product or service and is the result of a complex set of calculations, research and understanding and risk taking ability, as you asking here I am telling a premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market.

There are several pricing strategies:
Premium pricing: high price is used as a defining criterion.
Penetration pricing: price is set artificially low to gain market share quickly.
Economy pricing: no-frills price. Margins are wafer thin;
Skimming strategy: high price is charged for a product till such time as competitors allow after which prices can be dropped.

Strategic considerations
Information asymmetry (e.g., when buyers have no independent basis to test claims of "exceptional quality" for a particular product or service -- assuming the concept is well-defined to begin with);
Market status as a Luxury good or a Superior good; and
Market dynamics such as the level of competition and entry barriers.

The disadvantages of this pricing strategy includes:
not possible with commodity goods


Quick Reply
Your Username: Click here to log in

Message:
Options



All times are GMT +5. The time now is 01:24 PM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
Content Relevant URLs by vBSEO 3.6.0

1 2 3 4 5 6 7 8