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The marketing mix – pricing (Factors that affect pricing decisions (cost,…

- - - - How does the company’s market offering compare with competitors’ offerings in terms of customer value?
      - How strong are current competitors?
      - What are their [competitors’] current pricing strategies?
  - - - Demand pricing – This is setting a price based on customers’ professed willingness to buy a company’s offering at various price options (Blythe, 2006).
      - Good-value pricing – This involves setting a fair price based on a balance of quality against price; this might mean offering budget versions at a lower price, ‘the same quality for less’, or higher-quality versions at a reasonable price (Kotler and Armstrong, 2016, p. 327).
      - Value-added pricing – This is adding features or services to increase the value of an offering to consumers that differentiates it from competitors and enables a higher price to be charged (Kotler and Armstrong, 2016).
      - Psychological-based pricing – This involves using price to elicit an emotional response, for example using prestige pricing to signal quality or odd-even pricing (setting a price that ends in an odd number such as £7.99 rather than £8) to encourage lower price perceptions (Blythe, 2006)