Pricing strategies
by
Rawan
- October 23, 2017
1. Operations-oriented pricing: the objective using this strategy is seeking to match demand and supply to ensure the optimal use of your productive capacity in a certain period of time. A good example can be a hotel that tries to fill the rooms available. So they raise their prices when demand exceeds capacity in order to increase profits and pricing low in off-periods to increase demand.
2. Revenue-oriented pricing: the objective here is attempting to maximise the surplus of income over expenditures. This is also called cost-based pricing where businesses seek to maximize the profits and cover the costs.
3. Customer-oriented pricing: when using this strategy, you want to put your prices for the sake of customer number maximization. Using this strategy will encourage cross-selling opportunities and recognise different levels in the customer's ability to pay.
4. Value-based pricing: mainly used to maintain a luxury image. When using this strategy, you're using the price element to associate the price with value position in people's mind.
5. Relationship-oriented pricing: the objective using this pricing strategy is to set a price that will help you maintain relationship with an existing or potential customers.
6. Socially-oriented pricing: in this strategy, you're mainly song it to encourage or discourage a certain social attitudes and behaviors.
