Tag: revenue
Price Elasticity of Demand: Understanding the Relationship Between Price and Quantity Sold
Learn how Price Elasticity of Demand affects your business and society. Discover various determinants and applications of PED in this comprehensive guide
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.
