This virtually means that the company's reputation could suffer demises.
Telemarketing efforts are often constructed on impulse buys and psychological pricing, such as $19.99 instead of a round $20.00 or a "limited offer" deal in which the price is reduced from $30.00 to $19.99. This context makes the psychological pricing strategy suitable for the company.
4. Product-line Pricing
Advantages:
Sets a single unique price on all products coming from a product line, reducing as such the complexities which come from setting different prices and using differentiated strategies for each product category
Pushes towards the lowest retail price possible and generates as such customer satisfaction. Additionally, through increased consumer satisfaction, higher levels of volume sales are generated.
Disadvantages:
Damages the organizational productivity and profitability
Denies the existence of differences between the products
Forces down the quality of the items by strengthening on the importance of a low retail price
The prioritization of the low retail price on the product line damages the product and the consumer by reducing the quality of other components
Given the nature...
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