27 Chap - Module 4 - Pricing Strategies
27 Chap - Module 4 - Pricing Strategies
27 Chap - Module 4 - Pricing Strategies
Internal Factors
External Factors
Competition-Oriented Pricing
Three policy options are available to the firm under this pricing
method:
Premium pricing price above competition
Discount pricing price below competition
Parity pricing/Going rate pricing matching competition
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Psychological Pricing
Example of BPL: BPL, has priced its popular model 21 CTV @ Rs
10,990/-. In this case, based on costs & profit requirements, BPL had to
price upwards of Rs 11K. It has preferred to play on the psychology of
the consumers.
Example of GODREJ: similarly, Godrej has priced its popular model
computer chair @ Rs 1900 + duties & Taxes. In this case, the seller has
actually gone one extra step in psychological pricing. In order to
psychologically appeal to the consumers, the firm has separated duties
& taxes and pegged the price @ Rs 1900/-. This way, it has made it
appear that the price is well below the Rs 2000/- band.
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