ACTIVVITY

SKIMMING PRICING
Skim pricing, also known as price skimming, is a pricing strategy that sets new product prices high and subsequently lowers them
as competitors enter the market. Skim pricing is the opposite of penetration pricing, which prices newly launched products low to
build a big customer base at the outset.

EXAMPLE: When we first open our Coffee jelly Business, we'll utilize this pricing technique to trick buyers into believing that our
coffee jelly is exceptionally good and delicious due of its high cost. ... we're going to cut our prices if we think that our competitors
are luring away clients from us.So that they will select us over them.
Second, we will print high-quality product flyers to convince customers that they should buy them even though they are expensive.

COMPETITION PRICING
A simple definition of competitive pricing is when you create product prices based on the prices being offered by your competitors.
Of course, that's the simplest explanation, but it can also be a genuinely useful business and research tool.

EXAMPLE: We will research our competitors' pricing more at this time in order to align our price with theirs while still providing our
consumers with the greatest coffee jelly possible.

PSYCHOLOGGICAL PRICING
Psychological pricing is a marketing strategy where prices are expressed in a way that appeals more to consumers. It is a type of
pricing that aims at appealing to a customer’s emotional side. 14. 25 or 14.50 look more appealing than 15 and 16

EXAMPLE: By offering them deceptive pricing like 14, we will use this to draw customers to us. Instead of 15, use 25 to make them
more emotionally engaged because 14. 25 seems cheaper than 15.

OPTIONAL PRICING

Optional pricing is a type of pricing where the customer can pay a higher price for a product or service that includes additional
features or benefits. Optional pricing can be used in various ways but is most commonly seen as an upsell tactic in businesses such
as restaurants, hotels, and online retailers.

EXAMPLE:
With this type of marketing plan, we would price our products highest so that customers can still request a cheaper price for our
coffee jelly product.

VALUE BASED PRICING

Value-based pricing is a strategy of setting prices primarily based on a consumer’s perceived value of a product or service. Value-
based pricing is customer-focused, meaning companies base their pricing on how much the customer believes a product is worth.

EXAMPLE: In this case, the survey we conducted is crucial for us to understand what our customers believe to be the ideal price for
our product, therefore we will hold a group meeting and discuss their preferred price, which will determine the pricing for our coffee
jelly.