Continuing with the same Market Line business you have been using this quarter, what pricing strategy do you believe your Market Line business is currently using to reach its target audience? How does this pricing strategy entice their target customers to purchase the product?
Consider other businesses or products that you’ve learned about in the course videos or that you know from your own experience as a consumer. Please share one other example of a business that you believe uses an effective pricing strategy. State the pricing strategy and discuss why you believe this strategy is effective for their target audience.
Respond to peer response in at least four sentences “Macy’s uses a combination of pricing strategies to target its audience. They use the “high-low” strategy, charging high prices but reducing them during frequent sales. Macy’s also uses “promotional pricing”, by offering different discounts, including coupons, friends and family, and birthday discounts. They have seasonal, and holiday sales and offer discounts on credit card purchases. Macy’s Backstage sells clearance stock at a huge discount, attracting budget shoppers. Their pricing strategy entices customers to take advantage of the savings.
Dollar Tree uses a “market penetration” pricing strategy, which involves offering various products for a low price to penetrate the market. For many years, they offered items for $1, but with the growth of the business, they have raised prices to $1.25 and added upscale household items for $3 and $5. Despite the price increase, I still shop there often for household cleaning items, snacks, birthday, and holiday decorations. I find it saves me time and money”.
Must be four sentences for each bullet
