There are at least eight different pricing strategies for established goods and services. Explain four of those strategies and under what conditions a business owner should use them

What will be an ideal response?

1. Odd Pricing
Establish prices that end in odd numbers with the belief that merchandise selling with an odd ending number ($12.95 ) is cheaper than an item evenly priced ($13.00).
2. Price Lining
Manager stocks merchandise in several different price ranges, or price lines. Each category of merchandise contains items that are similar in appearance, quality, cost, performance, or other features making it less complicated for the customer.
3. Dynamic Pricing
Setting different prices for the same products and services for different customers based on information collected.
4. Leader Pricing
Small retailer marks down the customary price of a popular item in an attempt to attract more customers.
5. Geographic Pricing
Pricing based on the geographic area also referred to as zone pricing
6. Discounts
When products make reductions from normal list prices to move stale, outdated, damaged, or slow-moving merchandise. This includes multiple unit pricing.
7. Bundling
A pricing method that involves grouping together several products or services, or both, into a package that offers customers extra value at a special price.
8. Optional-Product Pricing
This is a technique that involves selling the base product for one price but selling the options or accessories for it at a much higher markup.
9. Captive-Product Pricing
This technique involves selling a product for a low price and charging a higher price for the accessories that accompany it.
10. Byproduct Pricing
This technique uses the revenue from the sale of byproducts to be more competitive in pricing the main product.
11. Suggested Retail Prices
Accepting the manufacturer's suggested price does not take into consideration the small firm's cost structure, image, or competitive situation. This approach does simplify pricing.
12. Follow the Leader Pricing
Basing prices on competitor's price points.