Pricing strategies can have a substantial impact on sales, profitability and market share, and are therefore a key marketing decision. An over-reliance on price promotion can have negative consequences on perceptions of the brand and marketers should consider price elasticity when analysing the effectiveness of pricing strategy. In a time of inflation, understanding price elasticity – by category and consumer segment – and brand differentiation is particularly important to make the right pricing decisions. Econometric modelling and experiments are key tools to understand a brand’s pricing power and its drivers.
Definition
Pricing strategies are the strategies that are put in...