Relatable?? We can buy five small tabs for 100 rupees and save Rs 35/-. That is a crazy 35% discount for the same quantity and from the same company. Maybe be company is practicing Penetration pricing and Skimming pricing at the same time for the same product!!!
Keywords: How do companies set product prices, Why do prices vary for the same product? Retail pricing psychology, Skimming pricing examples. Penetration pricing in India, Consumer pricing strategy.
Points to Ponder: Why does the same product have different prices in different stores? Is this a marketing trick? Penetration vs Skimming pricing explained, How brands use pricing strategies to maximize profits, What is dual pricing, and how does it affect consumers? Are we being overcharged? The truth about product pricing strategies
I think the companies adapt dual pricing strategy to generate more revenue. Understanding consumer psychology can be difficult. There is one set of customers that is very price conscious, so they might purchase 5 boxes of Rs.20.This Rs. 20 box is sold largely because of bottom of the pyramid people which are very large in number. And then there is another set of customers who don't bother much about price and do not look at those Rs.20 boxes. They directly go for the jam jar.
ReplyDeleteWhat looks like a discount is actually a mix of penetration pricing and price skimming -exactly what Kissan is using.
ReplyDelete