Status Quo Pricing Strategy - Explained
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
All right. So as marketers we devise our
products, we design them, we decide what
features they should have,
we create our promotional campaigns, and
we also determine
how we want to distribute our product or
where we want to make product available.
The last thing we have to decide is
what's the right price,
and there are a lot of different
strategies we can use to determine the
answer to that question.
One strategy is what's called a status
quo pricing strategy
this is possibly the simplest approach
because what this involves
is setting our product price equal to
over time. In other words it can be that
we match our competitors price
in other words we engage in price
matching that's a status quo
pricing strategy. Another way we could go
is what's called a price guarantee, in
if we keep our price the same over time
and we guarantee that it won't change
that's a status quo pricing strategy.
You might say well why would you do that
why would you keep your price the same?
Well one reason you might do that is if
you want to compete on
other factors things besides price so
for example if you think you can make a
selling your product at the same price
as the competitions
because your product is better it's just
a higher quality
or it has unique features, you might
engage in a status quo pricing strategy.
In any case status quo pricing relies on
the idea that we're going to keep the
price the same
as something whether it's our price or
the competition's price,
that's the key to status quo pricing.