Answer to Question #314169 in Marketing for prinka

Question

 

3. Now assume that Sam’s shirts sell for $400, his sweaters for $600, his socks for $150, and his hats for $200. Would your pricing strategy recommendations change any? Why or why not?

 

Answer 1

Instead of quoting a rounded-off values like $400, $200, $150, it is better to make use of psychological pricing tactics like ODD-EVEN PRICING and mark them as $199.9, $390, $149.9 to make it look more affordable. Also, Sam can explore exploiting the REFERENCE PRICING option to lure the customers well to prefer his brands as the most affordable in the market.

The low prices and the perceptive image of selling the things at more affordable price will bring in a lot of customer visits and will help him in garner huge sales through that increased footfall.