Pricing Strategy For The Fashion Industry (Essay Sample)

Pricing Strategy for the Fashion Industry
Student’s Name
Institutional Affiliation:
The primary goal of every business is to make profits and to increase shareholders' wealth in the long run. Thus, organizations are in a continuous quest to do all that enables them to achieve this objective. While experiencing a stiff competition, fashion industry presents an unavoidable need for sellers to have a good pricing strategy to survive in the market. The sensitivity in it compels payers to take caution because of the difference in purchasing power of purchasers. Some of the plans and models include penetration pricing, economy pricing, price skimming, and psychological pricing, among others.
According to Simeone (2015), this kind of business requires people to embrace and apply psychological pricing strategy. In this approach, the marketer aims at provoking a buyer to use emotions in deciding to buy instead of rationality. The ever-changing fashion continues to motivate people to buy because everyone wants to look attractive. However, choosing the most crucial primary need to satisfy poses a significant challenge to consumers. Psychological pricing would be a perfect match for the fashion industry which is also believed to be influenced by human feelings and perceptions. With, this strategy, people will tend to go for the cheapest product as long as it is fashion. For example, in a scenario where people are charging a certain price, it is highly essential to make a consumer feel that they are spending the least amount to get the same quality of product that is more highly priced by competitors. Thus, when other people are charging a particular type of dress or shirt at fifty dollars, a ...