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brand marketing, marketing keywords to know, marketing strategy, promotions

Marketing Keywords to Know: August 25, 2016

Backward Pricing 

Definition: Placing a high price on a product to research how much the consumer is willing to spend

 

Beats-deals-for-headphones

How much would you pay for a pair of headphones? Or a tablet?

Backward pricing is used often for items such as these, using a high selling price to see if the consumer will pay up. Pricing this way is helpful to gauge if the cost of production is viable and set a standard price an item will be sold for in the future. Because this factor weighs heavily on the amount of money the consumer is willing to spend, the popularity of an item will keep purchase prices high until its momentum dies down.

Do you recall any products that were very popular and (in your opinion) not worth their expensive price tag?

 

 

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About Lauren Young

Award-winning author of "Pour - Marketing Success Starts with the Right Ingredients", "Stir - Achieving the Perfect Marketing Mix" and the CEO/Founder of Freshly Baked Communications and Knead to Rise. Visit my website at http://www.FBC-Chicago.com.

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