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Paper Topic:

Article Review `Kamikaze Pricing`

(Paley , 2006 ,

. 319

An example of how consumer psychology impacts issues of pricing is the fact that , once a "penetration " price is associated with a product it is often very difficult to sway consumers to purchase the product at a skimming or neutral price . In other words the price intrudes upon the question of "What perception or image do customers hold in their minds about your product ?In general , it is difficult to regain a premium price position for the same brand once it has been diluted by low price promotions

through mass merchandising outlets (Paley , 2006 ,

. 320 So , more considerations than merely those of perceived immediate profitability should be considered in pricing there are also long-term consumer associations at play

In conclusion , I feel ,the Holden /Nagle article excels at forwarding an holistic appraisal of the crucial importance of pricing in marketing and that this appraisal is set forth in a comprehensive and quite ally rich fashion . of utmost importance according to the article 's positions is that marketers take into account both the fiscal and psychological repercussions of their pricing strategies

By understanding the core concepts of skimming , penetrating , and neutral pricing , along with the utterly undesired "kamikaze " marketing the student of business will be more able to visualize and comprehensively integrate the notion of pricing as a central and primary aspect of product image and also for economic viability . By understanding the virtues and possible risks of each of these pricing strategies , the business student will learn to recognize unique opportunities and -- also -- identify potential hazards in marketing References

BUSINESS OPTIONS Pricing Your Product for Profit (2006 , January 5 Manila Bulletin ,

. NA

Paley , N (2006 . The Manager 's Guide to Competitive Marketing Strategies (3rd ed . London : Thorogood

Holden , Reed K . and Nagle...

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