Pricing Strategies can be defined as a way or a method of finding a competitive price of a product or a service. The decision of the firm regarding the pricing of the product and the pricing strategy used by the firm highly impacts the consumer’s decision of whether or not to buy the product. While deciding to consider the application any of the pricing strategy the firms should and must be aware of the relative conditions in order to make an appropriate choice that will be beneficial for the business.
Product pricing has a big effect on the objectives of the company. It is important for the companies to use pricing strategically for adjusting the performance so that they can meet their revenue or profit objectives. However, the use of a pricing strategy can also have an unintended or adverse effect on the objectives of the company as well.
It is the customer who decides what warrants the high price of the product and makes a decision whether he/she is willing to buy the product or not. There are chances that one effect may overlap the another. One effect may lead to the generation of the other. Hopefully, the marketers are well aware of the purchasing mentality of their buyers and hence can use this to their advantage.
Out of all the available pricing strategies in the world of marketing, the marketer or the consumer should be able to make out and use the most appropriate pricing strategy in order to raise the sales of the company as well as maximize the profit margins of the company.