Implementing Price Strategy is the firm readiness to sell the product which would be effective if given an attractive price strategy listed below: a. Customary pricing is when one price is maintained over an extended period of time. Normally the price of the product will not be easily changed. The entrepreneur must consider the price of the product which is affordable to the majority of buyers. ex. A 1-peso candy. b. Variable pricing is when the price responds to cost fluctuations or differences in demand. The entrepreneur must consider the law of demand and supply. If there are sufficient supplies and few demands, the price will increase and vice versa. c. One-price policy is when the price is charged to all customers buying the product or service under similar conditions. The entrepreneur will set one price for all products available for sale even though they differ in design. d. Flexible pricing is based on the customer's ability to negotiate or buying power of the customer. The entrepreneur must meet the needs and wants of the customer so that they need to adjust the price just to ensure continued patronage and loyalty. e. Odd pricing are prices set at levels below even values. The entrepreneur uses odd numbers to attract customers in pricing a product. f. Price-quality association is when the consumers believed that high price represents high quality and low prices represent low quality. The entrepreneur instilled in the mind of the customers that having a high price contains high-quality materials. g. Prestige pricing is when customers set price floors and will not buy at prices below those floors. Above price ceilings, items would seem too expensive. The entrepreneur must consider that products must follow the price floor and ceiling set by the government. h. Leader pricing is selling key items at low prices to gain consumer loyalty within its product line. It is hoped that the customers will buy regularly priced products together with the specially priced one. The entrepreneur must be aggressive to win the respect of the competitors so that they can value the actions that will take place. i. Multiple-unit pricing is when the entrepreneur offers discounts to consumers for buying in large quantities. The entrepreneur must consider that selling more units will produce more profits. To prevent overstocking and maintain proper inventory, selling in bulk can increase profit and promote growth. j. Price lining is when instead of setting one price for a single model of a good or service, the firm sells two models of different quality and features at different prices. k. Price bundling is when the firm offers a basic product, options, and customer service for one total price. The entrepreneur will combine product and service to the price set in the product. l. Unbundled pricing is when the firm sells by individual components and allows customers to decide what to buy. The entrepreneur will set the price of the product item from the other. It can be sold separately and individually. m. Geographic pricing is when the prices are set depending on the distance of the buyer to the seller. Normally this activity is done if both parties are far from each other. The two parties must agree to the price before the transaction can take place. These are the sample transactions: FOB factory is when the buyer pays for all freight charges regardless of the distance. The buyer must be willing to pay all the expenses incurred during the transfer of the product from one place to another. Uniform delivered pricing is when buyers pay the same delivered price for the same quantity of goods. The entrepreneur shall consider the quantity of goods in setting the price of the product. Zone pricing is when the buyers within the geographic zone pay a uniform delivered price. The entrepreneur must provide the same measure of charges to one particular location. Base-point pricing is when the cost of transporting the goods is computed from the base point nearest buyer. In setting prices, the most accessible and nearest buyer need to determine as a base point in distributing the product. Terms of Payments are price agreements, including discounts, the timing of payments, and credits agreements. Discounts are reductions in the selling price given to customers for varying reasons: paying in cash, performing certain functions, buying in large quantities, and off-season buying. QUESTION: In the list of Attractive Price Strategies, what is the most appropriate strategy for a t-shirt brand? why? (support your answer with literature)
Implementing Price Strategy is the firm readiness to sell the product which would be effective if given an attractive price strategy listed below:
a. Customary pricing is when one price is maintained over an extended period of time. Normally the price of the product will not be easily changed. The entrepreneur must consider the price of the product which is affordable to the majority of buyers. ex. A 1-peso candy.
b. Variable pricing is when the price responds to cost fluctuations or differences in demand. The entrepreneur must consider the
c. One-price policy is when the price is charged to all customers buying the product or service under similar conditions. The entrepreneur will set one price for all products available for sale even though they differ in design.
d. Flexible pricing is based on the customer's ability to negotiate or
e. Odd pricing are prices set at levels below even values. The entrepreneur uses odd numbers to attract customers in pricing a product.
f. Price-quality association is when the consumers believed that high price represents high quality and low prices represent low quality. The entrepreneur instilled in the mind of the customers that having a high price contains high-quality materials.
g. Prestige pricing is when customers set
h. Leader pricing is selling key items at low prices to gain consumer loyalty within its product line. It is hoped that the customers will buy regularly priced products together with the specially priced one. The entrepreneur must be aggressive to win the respect of the competitors so that they can value the actions that will take place.
i. Multiple-unit pricing is when the entrepreneur offers discounts to consumers for buying in large quantities. The entrepreneur must consider that selling more units will produce more profits. To prevent overstocking and maintain proper inventory, selling in bulk can increase profit and promote growth.
j. Price lining is when instead of setting one price for a single model of a good or service, the firm sells two models of different quality and features at different prices.
k. Price bundling is when the firm offers a basic product, options, and customer service for one total price. The entrepreneur will combine product and service to the price set in the product.
l. Unbundled pricing is when the firm sells by individual components and allows customers to decide what to buy. The entrepreneur will set the price of the product item from the other. It can be sold separately and individually.
m. Geographic pricing is when the prices are set depending on the distance of the buyer to the seller. Normally this activity is done if both parties are far from each other. The two parties must agree to the price before the transaction can take place. These are the sample transactions:
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- FOB factory is when the buyer pays for all freight charges regardless of the distance. The buyer must be willing to pay all the expenses incurred during the transfer of the product from one place to another.
- Uniform delivered pricing is when buyers pay the same delivered price for the same quantity of goods. The entrepreneur shall consider the quantity of goods in setting the price of the product.
- Zone pricing is when the buyers within the geographic zone pay a uniform delivered price. The entrepreneur must provide the same measure of charges to one particular location.
- Base-point pricing is when the cost of transporting the goods is computed from the base point nearest buyer. In setting prices, the most accessible and nearest buyer need to determine as a base point in distributing the product.
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Terms of Payments are price agreements, including discounts, the timing of payments, and credits agreements. Discounts are reductions in the selling price given to customers for varying reasons: paying in cash, performing certain functions, buying in large quantities, and off-season buying.
QUESTION:
In the list of Attractive Price Strategies, what is the most appropriate strategy for a t-shirt brand? why? (support your answer with literature)
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