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Hi, I would like to ask
1. may I know value-based pricing is that considered as one of the pricing strategy?2. If the target segment is middle income people, should I use market skimming or market penetration pricing strategy?
Thanks
Value pricing is trying to decide on the value of a product to the consumer. If you were selling a unique drug that saved someone’s life, they would pay a lot, irrespective of the cost of production.
Market skimming is selling to well-off people. Middle eraners would probably xhoose to do without rather than paying amhigh price.
Penetration pricing would potentially work. Who doesn’t like a bargain?
1. Is that logically to apply value-based pricing for middle income group people? like talking about these group of people look for the products that are value for their money?
2. If apply market penetration for middle income grp, is that imply the quality of the products will be lower as well? becoz middle income ppl seek for both quality and price.
ThanksI think value pricing can work at all levels of income. The rich would look at the value a private jet has to them eg feedng their ego.
Low pricing does not necessarily mean low quality if the volume is high enough to make the goods very efficiemtly. Think of cut-price airlines. Some aspects of their service might be lowermthan we want but they are usually punctual and safe.
Sir, I can’t seem to find the videos for part 5 to 7 of chapter 24. Please what can I do ? Thanks.
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