Pricing: meaning, definitions and examples
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pricing
[ˈpraɪsɪŋ ]
Definitions
cost estimation
Pricing refers to the process of determining the value or cost of a product or service. It involves setting a price that will cover costs and generate profit while being competitive in the market.
Synonyms
Examples of usage
- The pricing strategy must consider customer perceptions.
- Our pricing has been revised to attract more clients.
- Effective pricing can significantly boost sales.
to set costs
To price something means to assign a value or cost to it. This is often part of a larger strategy to position the product in the market.
Synonyms
Examples of usage
- We need to price our new product competitively.
- She will price the items during the sale event.
- They decided to price the service based on demand.
Interesting Facts
Etymology
- The word 'price' comes from the Latin word 'pretium', meaning value or worth.
- Historically, 'pricing' refers to the act of setting a price, which became more formalized during trade in ancient markets.
- In Middle English, the word 'pricen' meant to value or assess value, which evolved into today's usage.
Economics
- Pricing strategies can influence consumer behavior, such as when a product is initially offered at a low price to attract buyers (penetration pricing).
- Dynamic pricing allows businesses to adjust prices in real-time based on demand and supply, commonly used in airlines and ride-sharing apps.
- Perceived value pricing is based on how much consumers believe a product is worth, rather than its cost of production.
Psychology
- Studies show that the number ending in '.99' (like $4.99) can increase sales because it feels cheaper than rounding up to the next dollar.
- People often associate higher prices with better quality, a belief leveraged in luxury branding.
- The anchoring effect suggests that the first price seen (the 'anchor') can influence decisions in subsequent pricing judgments.
Technology
- Online pricing algorithms use data analysis to set prices in real-time based on competitors, market demand, and consumer behavior.
- Artificial intelligence is increasingly used to predict optimal pricing strategies and enhance customer targeting.
- Blockchain technology can create more transparent pricing models, particularly in industries like supply chain management.
Pop Culture
- The economics behind pricing strategies is often referenced in popular literature and movies, showcasing the battle between cost and value.
- Reality TV shows about buying and pricing antiques often highlight the negotiation aspect of pricing.
- Video games frequently include pricing elements where players must balance limitations on in-game currency with the value of items.
Translations
Translations of the word "pricing" in other languages:
🇵🇹 preços
🇮🇳 मूल्य निर्धारण
🇩🇪 Preise
🇮🇩 harga
🇺🇦 ціноутворення
🇵🇱 ceny
🇯🇵 価格設定
🇫🇷 tarification
🇪🇸 precios
🇹🇷 fiyatlandırma
🇰🇷 가격 책정
🇸🇦 تسعير
🇨🇿 ceny
🇸🇰 ceny
🇨🇳 定价
🇸🇮 cene
🇮🇸 verðlagning
🇰🇿 бағалау
🇬🇪 ფასი
🇦🇿 qiymətləndirmə
🇲🇽 precios