A business can use pricing strategies to improve its customer price perception by implementing strategies such as value-based pricing, psychological pricing, or promotional pricing. Value-based pricing involves setting prices based on the perceived value of a product or service to the customer rather than on the cost of the product or service. Psychological pricing involves setting prices that are more appealing to customers such as pricing an item at $9.99 instead of $10.00. Promotional pricing involves temporarily reducing prices to increase short-term sales and attract more customers.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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