Sports and Entertainment Marketing Pricing Project
By: Morgan & Gioigo, Lj & Chase
Chanel uses Prestige Pricing by setting their prices higher because their brand is known as a high-end. When you see Chanel you think classy or believe someone who owns it is wealthy which is why the high-end name comes with a high-end price.
Psychological pricing or price ending or charm pricing is a marketing practice based on the theory that certain prices have a psychological impact. Stores all over the world use odd pricing to make prices seem more appealing to the buyer, for example pricing something $49.98 instead of $50.00.
Sometimes a form of psychological pricing that suggests buyers are more sensitive to certain ending digits. Even pricing expresses pricing with numbers ending in 1,5, or 0. For example pricing this ice cream cone for 50 cents in stead of 57 cents.
Skimming Pricing is a strategy where the charging of a high price occurs in order to gain maximum revenue conducted under conditions of product uniqueness and inelastic demand patterns.
Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. When the first iPhone 3g came out, not many people were interested and the price was much lower than the newest iPhone 5s. As the damand for iPhones became more popular, the more advanced the iPhone became and the better the technology got.
A pricing technique in which a store to offer all merchandise in a given category at certain prices, such as $10 and $20. The process used by retailers by separating goods by different quality levels. The qualoty of makeup depends on the price, obviously the higher the price is, the better the quality the makeup.
Bundle Pricing is a form of promotional price adjustment that offers discounted pricing when customers purchase several products at the same time. Wii offers a bundle package for Super Mario games offering multiple products for the price of one.
A pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion a "leader" is used as a related term and can mean any popular article. The purpose of Loss-Leader Strategy is to attract new customers by lowering prices of items.