Promotional Pricing Strategies

• -Group 8• Shruti Nagdive (109)• Soumodeep Das(110)

• Sreshta Sunil Kumar(111)• Ruchi Tallewar(113)

• Deevena Angel Thirupathi(114)• Uppalapati Sai Apoorva(115)

• Store sells selected goods below cost in order to stimulate additional store traffic

• Idea is to make up for the losses on highlighted products with additional purchases of profitable goods

Loss Leader Pricing

This is a special price set for a product, product range or service for a limited time frame and event.

For example, a supplier or retailer might celebrate an anniversary, and advertise special discounts for the anniversary week or month.

The prices for similar products when the retailer first opened.

Special Event Pricing

Yatra Anniversary Offer - Huge Discounts on Flights, Hotels, Holidays and Buses

Sellers offer special pricing only for certain customers

With a certain fee they can get a plethora of services

Special Customer Pricing

Instead of cutting its price, the company can offer customers low- interest financing.

Low-interest financing

Auto companies and other consumer-goods companies offer cash rebates to encourage purchase of the manufacturers’ products within a specified time period.

Rebates can help clear inventories without cutting the stated list price

Cash rebates 

When you buy an item that comes with an instant cash rebate, you get the rebate at the time of purchase. The rebate amount is subtracted from the original price and you pay the discount amount. There’s no need to fill out claim forms or wait for your rebate check -- it all happens instantly.

Instant Cash Rebate

To receive this type of rebate, you’ll pay full price for the item at the time of purchase.

You’ll receive a claim form to fill out and mail to the manufacturer of your goods.

In most cases, you’ll also need to send a copy of your receipt with the form.

After the manufacturer processes your claim, you’ll receive a check or debit card for the rebate amount in the mail.

Mail-In Cash Rebate

Process rebate claims for you through their websites.

Online Cash Rebate

Some credit cards offer cash back on purchases you charge to the card. These rebates typically range from 1 percent to 5 percent depending on the terms of your card. These rebates are either credited automatically to your account, decreasing your balance owed, or they collect until you decide what to do with the rebate balance.

Credit Card Cash-Back Rebates

Longer Payment Loans Stretching loans over longer periods

Thus, lower monthly payments

Consumers focus on the monthly affordability

Warranties To promote sales by adding a free or low-cost warranty

Psychological Discounting Sales strategy wherein the seller sets an artificial (inflated) price for a

product and offers to reduce the price from that point, thereby creating a false notion of a great or bargain deal in the consumer’s mind.

Also called “Noticeable Price Difference”.

Mostly used in supermarkets and departmental stores to create an impression of good value

Captive strategies comprise any kind of marketing and sales strategy whereby the customer, having made an initial purchase or decision, is constrained to purchase future items only from the same vendor.

Captive Pricing

Printer

Theme Parks

Razors

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