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- W2485478879 abstract "This chapter focuses on the three basic pricing strategies; skim, neutral, and penetration. In a skimming strategy, prices are set high relative to mainstream competitors. Use this strategy to maximize revenues generated from the high end of the market. In a neutral pricing strategy, prices are set close to those of the main competitors. Neutral pricing strategies are an important tool when one wants to take the focus off of price such as a product in a mature market or in a later stage of its life cycle. Companies that use a penetration pricing strategy set prices quite low relative to the competition. Their objective is to make price a driving factor in the purchase decision. The chapter further highlights how to choose these pricing strategies. While relatively simple, choosing a pricing strategy is a high-stakes decision. Choose wisely, and improved pricing performance becomes an engine of organic growth that drives both revenue and profits. Make the wrong decision, and one can start a price war that sucks profits out of the entire industry." @default.
- W2485478879 created "2016-08-23" @default.
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- W2485478879 date "2012-01-02" @default.
- W2485478879 modified "2023-10-17" @default.
- W2485478879 title "Apply One of Three Simple Pricing Strategies" @default.
- W2485478879 doi "https://doi.org/10.1002/9781119198741.ch3" @default.
- W2485478879 hasPublicationYear "2012" @default.
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