Pricing Tactics Field Study
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Pricing Tactics Field Study
Prices have a greater impact on the revenues of a company. Undoubtedly, businesses need to formulate good pricing strategies to attract more customers. A good pricing strategy positively impacts the revenue potential of a company. Good pricing strategies enhance the company’s performance despite the level of the company (Schindler, 2011). An effective pricing strategy considers the market conditions, consumer purchasing power, competitors’ actions, variable costs, trade margins among other factors. Despite formulating the pricing strategy companies need to employ various tactics to effectively implement the strategies (Smith, 2017). Some of these tactics include quantity discounts, loss-leader pricing, price matching, seasonal discounts, charm pricing, and cumulative quantity discounts. This paper aims to highlight some of the tactics used based on a field study.
Quantity discounts
Figure 1. Higgit (2019, Dec 4) Walmart
Pepsi is a household in and is consumed by many customers, Pepsi is a carbonated drink produced by Pepsi Co. Pepsi is stocked in numerous consumer shops. The photo was taken from a self-selection store. This type of marketing tactic is a quality discount tactic.
Loss-leader pricing
Figure 2. Higgit (2019, Dec 6) Walmart
Supermarkets often use price to attract more customers. Wal-Mart is no exception. The photo was taken in one of the Walmart stores where a loss-leader pricing tactic was used.
Charm Pricing
Figure 3. Higgit (2019, Dec 4) Candy World
A snicker is a name when every person with sugar tooth holds to dearly. Snickers are chocolate like bars that give a fulfilling urge after consumption. This photo was taken from a mini supermarket in my hometown. The type of pricing is a charm pricing tactic.
Seasonal Discounts
Figure 4. Higgit (2019, Dec 3) Walmart cloth section
Every Christmas season comes with offers from various clothing shops. They cut the price by a given percentage with the notion that people are on a shopping spree during the Christmas season. The photo was taken from a clothing shop in my neighborhood. The type of pricing tactic is seasonal discount pricing.
Price Matching
Figure 5. Higgit (2019, Dec74) Green Grocer
Price matching is common in grocery stores. It involves giving the same price to various products. The photo was taken from a local grocery store. The type of pricing tactic is price matching.
Specific Pricing
Figure 6. Higgit (2019, Dec 4) Gift Center
Specified pricing gives a precise description of the price to a particular product. This was taken from a gift shop. The type of marketing is specified pricing and the pricing tactic used is specified pricing.
Odd pricing
Figure 7. Higgit (2019, Dec 8) Everlane
Some people treasure old fashion, this kind of behavior makes clothing companies place a high price tag on the odd item. The photo was taken from Everlane store s and to demonstrate odd pricing tactics the company uses on its adored fashion ware.
References
Schindler, R. M. (2011). Pricing Strategies: A Marketing Approach. Thousand Oaks: SAGE Publications.
Smith, T. J. (2017). Pricing strategy: Setting price levels, managing price discounts, & establishing price structures. Delhi, India: Cengage Learning
