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This is famously called psychological pricing or charm pricing. Retailers also use bundlepricing strategies, wherein organizations sell a set of goods with lower prices than they would have charged if the customer bought all of them independently. market basket analysis.
For example, airline ticket prices go up during holidays or when flying to certain locations, like Orlando, Florida (Walt Disney World). Coats and sweater prices go down during summer months when the weather is warm there isn’t as much need for them. BundlePricing. Dynamic Pricing.
Dynamic pricing refers to a pricing strategy where sellers can optimize their prices based on real-time inputs with the goal of maximizing revenue. It is sometimes known as “price discrimination.” ” Dynamic prices can change alongside market demands or outside conditions, such as time or location.
Retailers that offer delivery, maintenance, and other services can use captive product pricing. Bundlepricing. With bundlepricing, retailers sell complementary items together at a combined price that is lower than the sum of their individual prices. Optional product pricing.
Retailers should carefully consider factors such as pricing psychology, competitive pricing analysis, and promotional pricing tactics to determine the most effective pricing strategy for their products.
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