What are the different Techniques for Pricing?

Companies adopt so many methods for the attraction and to get intentions of the customers to themselves to raise the sale and ultimate benefit is to raise the profit of a company, there are different techniques that are used by the managers to get attention of its customers which are described as below:

Psychological Pricing: it is a kinds of pricing technique which is set by the experts in which the experts play the game with the customers by offering them Odd and Even Prices such as some companies offer their product with the rate of $98 now in this method customer psychological feels that this is less or cheap price it is not much like $100.

Prestige price is also known as the psychological price in which the prices of goods are kept high for the period of time, in which the appearance of the quality is shows as high.

Customary Price: It is kinds of technique in which prices of the products or units are set according to the market trend, the purchasing power of the market is focused and according to the ground reality the quality of product is compromised and it is also set with expectations of the customers.

Sometimes customers feels that as if the living standard, the purchasing power of the customers are high and rich the products are offered in that manner, they quality of the products are high and goods are luxurious, and if their living standard is low and they do not have such potential purchasing power the customer except such price from the companies who offer products.

Price Lining: In this pricing techniques the products are offered of all levels from low quality product to high quality product including all the sizes of the products, say for suppose there is a single company which offer the shampoo for hairs now the size are the very tiny bottle, small bottle and the large bottle in this sometimes the quality is also compromised.

Dual Pricing: For one product which is same of the quality same of the size different rates are charged for that particular product suppose in a market the price of a product A is $10 but after few step you will find the same product same of the size charge $15 for that product, this is due to commercializing of the area, prices are charged according to the different areas, the expenses of the lightening, pleasant atmosphere, decorations such things are also charged with the product prices.

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