For the following scenarios, suggest a pricing strategy and justify why that strategy is most suitable for that business. (penetration, economy, price skimming, psychological, premium, competitor, cost plus) Scenario 1: Corey has just launched an online business selling customised hoodies. The hoodies are high quality and made uniquely for each individual customer. He sells them solely online through his Shopify store. Scenario 2: Jasmin has a well-established coffee shop in her local area that has a strong reputation. Due to her strong reputation Jasmin has developed an ice cold coffee drink in a can. She has just secured a deal to supply local grocery stores and garden centres with her new product. Scenario 3: Ellie writes eBooks for people in business and has a very reputable name but is branching out to follow her passion of writing eBooks for children. This is a highly competitive market where her name as an author is not known.
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
For the following scenarios, suggest a pricing strategy and justify why that strategy is most suitable for that business. (penetration, economy, price skimming, psychological, premium, competitor, cost plus)
|
Scenario 1: Corey has just launched an online business selling customised hoodies. The hoodies are high quality and made uniquely for each individual customer. He sells them solely online through his Shopify store. |
|
|
|
Scenario 2: Jasmin has a well-established coffee shop in her local area that has a strong reputation. Due to her strong reputation Jasmin has developed an ice cold coffee drink in a can. She has just secured a deal to supply local grocery stores and garden centres with her new product. |
|
|
|
Scenario 3: Ellie writes eBooks for people in business and has a very reputable name but is branching out to follow her passion of writing eBooks for children. This is a highly competitive market where her name as an author is not known. |
|
|
For the following scenarios, suggest a pricing strategies and justify why that strategy is most suitable for that business.
|
Scenario 4: Thamid is a reputable independent financial advisor that specialises in investment advice to wealthy individuals with a net worth of over $1 million. |
|
|
|
Scenario 5: Maurice is a well-established roofer within his local area. However he is wanting to expand and gain new customers in the neighbouring town, where he currently is relatively unknown. |
|
|
|
Scenario 6: Diana is transforming her home-based invitation business to a small shop in a retail district. She will be providing the first of its kind “eco-invitation”. The invitation (when the individual is done with it) can be planted in a pot to grow into a beautiful flower hence reducing the paper waste. |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Ellie writes eBooks for people in business and has a very reputable name but is branching out to follow her passion of writing eBooks for children. This is a highly competitive market where her name as an author is not known.
by Bartleby ExpertThomas is a reputable independent financial advisor that specialises in investment advice to wealthy individuals with a net worth of over $1 million
by Bartleby ExpertMaurice is a well-established roofer within his local area. However, he is wanting to expand and gain new customers in the neighbouring town, where he currently is relatively unknown
by Bartleby Expert
