Price Strategies 2
The primary goal of every business is to make profits and to increase shareholders'
wealth in the long run. Thus, organizations are in a continuous quest to do all that enables them
to achieve this objective. While experiencing a stiff competition, fashion industry presents an
unavoidable need for sellers to have a good pricing strategy to survive in the market. The
sensitivity in it compels payers to take caution because of the difference in purchasing power of
purchasers. Some of the plans and models include penetration pricing, economy pricing, price
skimming, and psychological pricing, among others.
According to Simeone (2015), this kind of business requires people to embrace and apply
psychological pricing strategy. In this approach, the marketer aims at provoking a buyer to use
emotions in deciding to buy instead of rationality. The ever-changing fashion continues to
motivate people to buy because everyone wants to look attractive. However, choosing the most
crucial primary need to satisfy poses a significant challenge to consumers. Psychological pricing
would be a perfect match for the fashion industry which is also believed to be influenced by
human feelings and perceptions. With, this strategy, people will tend to go for the cheapest
product as long as it is fashion. For example, in a scenario where people are charging a certain
price, it is highly essential to make a consumer feel that they are spending the least amount to get
the same quality of product that is more highly priced by competitors. Thus, when other people
are charging a particular type of dress or shirt at fifty dollars, a good marketer would charge $49
but still make a considerable profit (Danziger, Hadar & Morwitz, 2014).
In conclusion, this industry is a highly sensitive sector that marketers are advised to
make right decisions. Given an ideal circumstance, the strategy discussed above will present a
perfect opportunity for one to grow his/her business. Otherwise, there exists a gap in the market
that only needs to be filled.