Psychological Pricing Advantages & Disadvantages
Capturing attention in ecommerce isn’t easy. Staying competitive means understanding both consumer psychology and competitor pricing strategies. Psychological pricing — a method that taps into buyer psychology to influence purchase decisions — could be the tool that sets your business apart. But like any strategy, it comes with pros and cons. Here’s how to use […]
Why Do Companies Use Price Discrimination?
What is price discrimination? Price discrimination is a strategy where businesses charge different prices for the same product or service based on specific criteria, allowing companies to capture maximum revenue by tailoring prices to various consumer groups. At its core, price discrimination is about identifying what each customer segment is willing to pay and adjusting […]
Price Elasticity – A Simple Explanation
Determining the right price can be one of the most challenging decisions in business because of its direct impact on your bottom line. One critical concept to understand when setting prices is price elasticity. What is price elasticity? Price elasticity of demand measures how sensitive customer demand is to changes in price. In other words, […]
The Importance of Pricing in the Marketing Mix
Spend enough time in ecommerce, and you’ll encounter the “Marketing Mix” — Product, Place, Promotion, and Price. These 4Ps are the foundation of effective marketing strategies, each serving a unique role: And then there’s Price — arguably the most powerful of them all. Why? Because price directly impacts consumer behavior and immediately affects your bottom […]
What is Surge Pricing – and is it Appropriate For My Business?
What is surge pricing? Surge pricing happens when a company raises its prices due to an increase in demand — and lowers them when demand weakens. It’s a dynamic strategy that adjusts pricing in real time based on the current market environment. Let’s explore two examples to understand where surge pricing works best and why […]
What is Ecommerce Dynamic Pricing?
Ecommerce dynamic pricing is a strategy that automatically adjusts product prices in real-time based on factors like market demand, competitor pricing, and customer behavior. This pricing approach helps businesses remain flexible and competitive by continuously optimizing prices to reflect market conditions. What does dynamic pricing mean in ecommerce? Dynamic pricing adjusts prices for products and […]
What is Strategic Pricing – and Why Is It Important?
Pricing is one of the most powerful tools you have to boost profitability, but strategic pricing takes it to the next level. It’s about creating conditions where more profitable pricing outcomes naturally occur. So, what exactly is strategic pricing? Some define strategic pricing as value creation. Others call it competitor awareness or setting price bands. […]
How to Create Dynamic Pricing on Shopify
Creating a dynamic pricing strategy on Shopify doesn’t have to be complicated. By understanding the basics, setting up your system properly, and using best-in-class tools like Intelis, you can ensure your Shopify store stays competitive and profitable. What is dynamic pricing? Dynamic pricing is a strategy that allows you to adjust your product prices in […]