More on Penetration Pricing

One of the most common examples of penetration pricing is ‘buy one get one free’, where you offer an item free with a related purchase. This tactic works much better than a 50% discount, as the word ‘free’ has a strong psychological effect on consumers. Customers often buy other products to compensate for the discounted one. This strategy is an excellent way to move dead stock and introduce new products. A new product can be linked with a top selling product in a similar category.

How to Implement a Penetration Pricing Strategy in Retail

A successful penetration pricing strategy depends on the type of product or service. Subscription services are a prime example. These businesses capture a large percentage of the market quickly and then raise prices. After a period of time, they retain customers because they offer a great customer experience. However, the line between penetration pricing and predatory pricing is hazy.

The Similarities Between Shopping Online & in the Mall

online shopping is convenient. With millions of products available at your fingertips and just a few clicks away, it’s easy to find exactly what you want when you want it. But convenience isn’t the only benefit to shopping online—there are many other reasons why so many people choose to buy things from their computer rather than in person.

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