Any business can utilize a pricing strategy when marketing a product or service. The price can be set to maximize profitability for each unit sold. It can be used to defend an existing market from new entrants (increasing the barriers to entry for new competitors), to increase market share within a market or to enter a new market.
Review the Pricing strategies defined in module 3 and match the strategy to the scenarios provided. Provide a justification for your answers.
PLEASE SEE THE ATTACHED/UPLOADED DOCUMENTS FROM LECTURE REGARDING PRICING DISCUSSION:
Premium Pricing / Price Skimming
A fine dining restaurant has priced its offerings substantially higher than its closest competition.
A quick-service restaurant has decided to use odd pricing i.e $3.47, $6.99 etc
A new caterer has intentionally priced themselves lower than their nearest competitors.
A sports bar has priced a weekly special that includes 1 lb of wings, a pitcher of beer and a dessert for one price
A grocery store has decided not to spend much on marketing, but they offer their products at a consistently lower price