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Hassan, Pakistan
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Pioneer Pricing vs. Psychological Pricing
What is the difference between psychological pricing and pioneer pricing?
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Zach Hegde
Australia
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Pioneer Pricing Pioneer pricing is first to market on a new product or service untested and untried. It is not connected to production or other costs.
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abhishek
Business Consultant, India
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Pioneer versus Psychological Pricing Pioneer pricing refers to the cost + profit margin of the corporation...
Psychological Pricing is pricing which impacts the emotion of consumers in favor of the company's product enhancing sales.
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Jaap de Jonge
Editor, Netherlands
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Pioneer Pricing versus Psychological Pricing In my view,
Pioneer pricing involves setting the (base) price for a new product. The base price can be set high to quickly recover development costs and can be used as a reference point for developing discount prices in various market segments.
In determining the pioneer base price, typical considerations include:
- How quickly competitors will enter the market
- How strong competitors will enter the market
- The effect their entry will have on the development of the demand
Psychological pricing encourages purchases based on emotional rather than rational responses. It is used most often at the retail level for B2C products. A typical example is a toothpaste for $0.99.
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