Free listings to attract sellers to a marketplace.A low-cost beta version of a SaaS product that’s set to rise in price after launch.A special six-month discount for switching from a competitor. A buy-one-get-one-free (BOGO) offer for this weekend only.Once it gains enough traction (i.e., market penetration), the business will either increase the price to a sustainable level or keep it low to continue drawing new customers.Ī penetration price could either be temporary or baked into its long-term growth strategy. Penetration pricing is a pricing strategy where a business introduces customers to its product at a low price, often significantly below the eventual market price, to draw them in and gain market share quickly. Data Required for Effective Penetration Pricing.Additionally, it is shown that the skimming price strategy and market expansion and growth are strongly related. It has also been demonstrated that choosing a pricing strategy for gaining a sizable market share is rather difficult. A strong association between pricing tactics and the age, gender, and educational background of the young aspiring entrepreneurs was discovered through this lengthy investigation. The young budding entrepreneur's insights on the impact of pricing strategy is collected in this survey. Effort has also to been taken to offer suggestion to improve on choosing the best pricing strategies. This study aims to evaluate the impact of pricing strategy stimulating market growth which leads to expansion and also to study how challenging to select penetration pricing strategy in order to win large market share. Under this survey the awareness level on the basic pricing strategies called the skimming and penetration pricing is conducted among the young entrepreneurs. So out of the various dynamic strategies what is contributing to the organisational growth and successful expansion is debatable as some consumers likely to associate less expensive products with cheap quality and the products of a higher price will tend to be associated with higher value. Taking the fundamental pricing strategies into consideration the penetration pricing and skimming pricing achieve different objectives such as obtaining large market share and premium brand recognition respectively. The pricing strategies can be set to achieve various objectives such as winning a large market share or to discourage competitors from entering the market. As prices are the foundational segment any business's revenue, selecting the optimal pricing strategy is quite challenging task for every business as this pricing strategy impacts the growth of the firm and the expansion process. This survey has been taken to understand how young budding entrepreneurs' viewpoint is on the pricing strategies, which is embodied in the current market scenario. The theoretical literature review methodology was employed in this research to answer the following question: what is the optimal pricing strategy should the marketer/decision-maker follow to achieve the firm goals? This study demonstrates the difference between the mentioned above (skimming and penetration) from different aspects. The right decision taken to determine the suitable price means the success of the product, which in turn, the success of the company through achieving its objective. On the other hand, avoiding the threat of competitors and leading the market through the high diffusion of the product are the main pros of penetration pricing. Gaining high profit in a short time and excellent customer's perception of the product quality is the most advantage of skimming pricing. Each type of these strategies has its merits and demerits. Some circumstances and factors affect which one of these strategies should be adopted. Skimming pricing strategy and penetration pricing strategy are the most popular pricing strategy followed by companies for pricing a new product. Many pricing strategies were developed as a response to the market's needs. Adopting a pricing strategy becomes crucial in the current high-competitive environment.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |