Saturday, August 24, 2013

Pricing Strategies: A Quick Tutorial

Is the price right?
 [source: AmazonGenius]

Pricing is the moment of truth for any business. Demand for a product is eventually a result of the price being charged for a product, so setting the "right" price is as important as choosing the "right" product to sell that can create a successful business. Pricing is studied more in the field of marketing where pricing is one of the 4 Ps of marketing (others are product, place and promotion).

The focal point of my research so far has been the study of pricing in supply chain contexts such as stockouts, different type of upstream contracts or sourcing, and competition. The more pressing and fundamental issue at the core of pricing is how consumers react to different pricing strategies and what are these?

In order to learn more about pricing strategies, I came across this online tutorial by Houston Chronicle (which is not a place that comes to my mind when I am thinking about literature on pricing). 

The link is : Houston Chronicle
Houston Chronicle

I liked the examples, and compartmentalization of topics at this source. I would more likely to call this a wiki on pricing strategies.

With growing technology and big-data pricing is even more challenging and there is more scope for  innovative pricing strategies.

1 comment:

  1. Pricing is one of the toughest decisions you will have to make with your business. Your revenue and market value will depend on this. This article shows some smart tips regarding pricing.

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