ADMS 2200 Chapter Notes - Chapter 18: List Price, Pricing Strategies, The Home Depot

• School: York University
• Department: Administrative Studies
• Course: ADMS 2200
• Professor: A L L

Document Summary

Specific pricing strategies grow out of the overall marketing strategy. Skimming pricing strategy pricing strategy involving the use of a high price relative to competitive offerings. Commonly used as a market entry price for distinctive goods or services with little or no initial competition. Sometimes used throughout the life of a product, as with luxury goods. Permits marketers to control demand but also attracts competitors. Price declines can help marketers capture greater market share during late growth and early maturity stages. Penetration pricing strategy pricing strategy involving the use of a relatively low entry price compared with competitive offerings, based on the theory that this initial low price will help secure market acceptance. Price level may increase to match competitors once product has recognition in the market. Example: credit card companies that offer low introductory interest rates. Competition may lower prices to counter this strategy. Works best for goods and services that have: