Pricing and non pricing strategies

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  • Evaluate pricing and non-pricing strategies to increase profit/revenue
    • Branding
      • Eval: takes a long time to develop a strong brand image
    • Advertising
      • Expensive and no guarantee of success
    • Price discrimination
      • Eval: depends on how elastic the product is
    • Loss leader
      • Eval: profit increase has to be more than the money lost from the loss leader
    • Predatory pricing
      • Eval: profits are only made in the LR
    • Profit maximisation
      • Eval: depends on the market structure e.g. perefect competitiion firms cant make abnormal profit in LR

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