PRICE POINTS HELP PLEASE :) (1 Viewer)

[AKONS]

G'day guys!

I'm a little confused about what price points are defined as, in the context of it being a marketing strategy in the business studies HSC course.

For example is it:
1) A business has 3 similar products. They charge them on an increasing scale of price (Eg. product one:$10, two:$20, three:$30)
2) A business sets the price according to what consumer perceives is average, then charges according to this (Eg. high price point=above, low price point=below, medium price point=equal).
3) Something else. I'm not sure of yet.

Thanks in advance to anyone who helps

 

[Maurice69]

Hey AKONS,

Good question! Price points is a pricing strategy adopted by businesses where products are sold at predetermined prices. Essentially what this means is that prices are predetermined & discrete, and are eluded from fluctuations in the economy.

A good way to think about it is, as you said in your 'Example A', that a business has an array of price points (low to high), allowing individual customers to select the optimal price for their day-to-day lives.

Hope that helps.