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Pricing Strategies

Horizontales
When the firm sets the price lower for a set amount of time
Tactic that company use to increase sales and maximize profits by selling their goods and services.
Will determine the price
This occurs when a business sets price below the cost of the product
Verticales
Sets its price lower than the competitors’ price to be able to enter a new market
setting a price by adding a fixed amount or percentage to the cost of making or buying the product.
Often used when there is strong competition in a market and customers are faced with a wide choice of where to buy from.
Based on the attitude of a consumer towards a product, the company sets prices of the commodity.