Page 5 - PCM - Pricing strategies Revista

PERIODIC DISCOUNTING REAL LIFE EXAMPLE

P Apple launched this year the iPhone 7 and iPhone
rice discounting is a strategy that turns

around the time. This leads the company
7 Plus. With these two new products, we can see
to have two different types of customers:

the “fussy” and the “sparing”. that iPhone 5S and iPhone SE have their price
decreased.
(1) The fussy consumers are the ones who must
Thus, this seems to be an optimal strategy
have the products right after they are launched in
because:
the market.
(1) the fussy and the (high) brand loyalty
(2) The sparing consumers are the ones that wait
consumers will of course buy these new products
until the brand decrease the price of the same
(they can even re-order to receive earlier by a too
product.
expensive price); and

Analyzing its customers, the company will offer (2) the sparing consumers (or the ones that want
the same product to the different segments, but: an iPhone but can’t afford to buy at the initial
(1) For the fussy consumers at a higher price price) will purchase the old models that have a

(2) For the sparing consumers with discount prices good discount price.

However, this does not mean that the second http://www.gms-store.com/iPhone-7-cat
segment (the sparing consumers) will purchase

the rest of the products that weren’t sold to the
iPhone 7 iPhone 6 iPhone SE iPhone 5S
st
1 segment.

This strategy would be a great way to maximize

the profits of the companies, because they are
selling at a price that customers are almost willing

to pay.

In this strategy, there are some general examples
779,00€ 669,00€ 559,00€ 349,00€
of what firms can do:

 Off-season fashion and off-season travel fares
 Priority pricing of scare products

 Price skimming of new products
 Discounting of old models

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PRODUCT AND CLIENTS MANAGEMENT