opportunity 101 of 150 Price is, all too often, considered all too simplistically. There are a number strategies impacting on pricing that can be readily used to manage the price that the primary target market will pay for a product. Three strategies used very effectively over recent years have been: Decoy pricing Anchoring Identifying Decoy […]

 opportunity 101 of 150 Price is, all too often, considered all too simplistically. There are a number strategies impacting on pricing that can be readily used to manage the price that the primary target market will pay for a product. Three strategies used very effectively over recent years have been: Decoy pricing Anchoring Identifying Decoy pricing involves using a much cheaper alternative A to elevate the perceived quality of product B, or a much dearer alternative C that has the effect of enhancing the perceived value of product B. A strategy often used, by Apple and others, involves offering three products: Low price option Medium priced option High priced option Research has found that where this strategy is used, up to 60% of consumers purchase the medium-priced option – attracting a higher price and margin than the lower priced option.  This research suggests that consumers view the medium-priced option as…