Abstract
Many businesses, such as Walmart, Target, and car dealerships used economy and psychology pricing strategies to gain businesses and ensure that customers are buying the product that they want to keep them satisfied. In economy pricing, marketing and production costs are kept low, so that the customer can buy products and services that are affordable. Psychology pricing is also used, which businesses utilize by getting people to buy things through their emotions. This paper will explain the details of each pricing policy, the businesses that use these strategies, and how my thesis of: Economy pricing and psychology pricing are the most effective strategies to utilize in business, as they satisfy the customer and the business that establishes a solid relationship.
Introduction
Businesses use many different pricing strategies that are used to sell products and services that will satisfy the customer. This brief paper will describe two strategies. It will also prove the thesis of: Economy pricing and psychology pricing are the most effective strategies to utilize in business, as they satisfy the customer and the business and establish a solid relationship.
Economy Pricing
Economy pricing is used by food suppliers and some retailers. Geared toward catering toward consumers that are on a budget, economy pricing focuses on reducing the costs of production and marketing so that the customer can buy a product or service that they need for an affordable price. Stores such as Walmart and Target and BJ’s use this pricing strategy. However, these stores can use this pricing, due to having many stores across the country and having a large volume store. The price is often the bottom line. Customers want to buy the best product or service at the most affordable price. Offering merchandise that is high quality can keep customers loyal .
Psychology Pricing
Psychology pricing is used in most businesses. In this strategy, marketers use techniques that get customers to buy something, based on an emotional level versus a rational, logical reason. One psychology pricing technique that businesses always use is stating a price at $1.99 versus $2.00. Consumers usually look at the first number versus the last number, which makes $1.99 more preferably. Appealing to people’s emotions is used in many businesses, such as car sales, door-to-door selling, and online kits because it works to sell more products .
Conclusion
As you can see, many businesses, such as Walmart, Target, and car dealerships use economy and psychology pricing to gain businesses and ensure that customers are buying the product that they want. In economy pricing, marketing and production costs are kept low, so that the customer can buy products that are affordable. In psychology pricing, businesses influence people to buy things through their emotions. The thesis of Economy pricing and psychology pricing are the most effective strategies to utilize in business, as they satisfy the customer and the business that establishes a solid relationship has been shown.
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