• Optional product pricing - A pricing strategy that involves the companies to increase the amount customer spend once they start to buy. Optional 'extras' increase the overall price of the product or service. An example aside from the cell phone business would be Airlines. For example airlines will charge for optional extras such as guaranteeing a window seat or reserving a row of seats next to each other. In other words, for an upgrade to be made, the price associated with it has to be paid. This is one of the best strategies for cell phone businesses. Extras would include long distance minutes, caller ID, extra day time minutes etc. All these features might not be necessary to customers but have the ability to increase buying power. But again, people can decide not add new features onto their plans or maybe even switch phone companies to ones who offer an All-in-one bundle for a lower price.
• Promotional pricing – This pricing strategy is most preferred by customers since it means products are on sale for a short period of time for promotion purposes. There are many examples of promotional pricing including approaches such as Buy one get one free, buy one get the other one for half price etc. Such a strategy does sound attractive to the customers and has the power to fill up stores quickly to take advantage of sale but also has a drawback to it. The promotion only lasts for a certain period and after, prices rise back to its original value. This strategy is only used to build that image in a consumers head about their service and how they treat their customers by providing them with valuable goods or services.
Cite This Essay
(2011, 02). Case Study Marketing. StudyMode.com. Retrieved 02, 2011, from http://www.studymode.com/essays/Case-Study-Marketing-588516.html
"Case Study Marketing" StudyMode.com. 02 2011. 02 2011 <http://www.studymode.com/essays/Case-Study-Marketing-588516.html>.
"Case Study Marketing." StudyMode.com. 02, 2011. Accessed 02, 2011. http://www.studymode.com/essays/Case-Study-Marketing-588516.html.