Explain how you would apply any five pricing techniques to attract customers​

Explanation:

1. DECOY PRICING

This occurs when customers make a purchase they must often choose between products with different prices and attributes.

This method of pricing is meant to influence the consumer's purchasing decision and maximise the sales of one particular product. The seller will offer at least three products; two of the products will have a similar or equal price. The two products with the similar prices should be the most expensive ones, and one of the two should be less attractive than the other.

2. LOSS LEADER

This is when a product is sold at a low price (often without profit) in order to stimulate other profitable sales or to attract new customers.

The main is that it will help the business to expand their market share as a whole. It's common practice when first entering a market as it introduces new customers to a service or product in the hope of building a customer base and securing future

3.ODD PRICING

This is a method of psychological pricing a product. Prices ending in 9, 95, 97, 99 are sometimes called “charm prices” and in this type of pricing, the seller fixes a price where the last digits are odd numbers. This is intended to give the buyer no room for manœuvering or for bargaining as the price appears to be less - a product priced at £9.99 will seems much cheaper than one priced at £10.00

4. PRICE DISCRIMINATION

The purpose of price discrimination is to capture the market's consumer surplus and generate the most revenue possible for a product. Identical goods or services are sold at different prices from the same provider to different segments of the market. Industries that commonly use price discrimination include the travel industry, pharmaceuticals and textbook publishers.

5. PRODUCT BUNDLE PRICING

Using this method, sellers will combine several products in the same package. It also serves to move old stock. Blu-ray and videogames are often sold using the bundle approach once they reach the end of their product life cycle. This technique is used at auctions where one attractive item may be included in a lot with a box of less interesting things. Buyers must bid for the entire lot. It’s a good way of moving slow selling products, and in a way is another form of promotional pricing.

magnitude and direction