In the modern world, there is a high level of competition between companies, with their pricing strategies being crucial factors that impact customers’ loyalty to a brand. The existing pricing strategies differ in their use by numerous organizations, especially in the marketing strategies of those organizations on the Internet (Ali & Anwar, 2021). Companies promote their products and services on various social media platforms due to their pricing strategies by offering content that persuades people to purchase (Ali & Anwar, 2021).
In particular, strategies such as penetration and skimming both have a positive influence on consumer behavior but are used by different organizations on the Internet, depending on their client segmentation and purposes (Ali & Anwar, 2021). Pricing strategies can affect companies’ promotion of their products and services via social media.
To better understand the effects of pricing strategies on consumer behavior, one should analyze the reasons behind the use of a certain strategy on a particular platform. For instance, penetration pricing is used by companies on social media websites such as Facebook by providing marketing content based on connections between people in terms of their interests (Ali & Anwar, 2021). On the other hand, companies that focus on skimming pricing typically advertise on websites like Reddit, where users collect important links and constantly revisit those (Ali & Anwar, 2021). Both of these strategies allow the use of marketing tools in the form of hyperlinks, photos, and videos (Ali & Anwar, 2021).
Companies can use different platforms in accordance with their pricing strategies to analyze consumer behavior and offer them relevant advertisements for their pricing preferences (Ali & Anwar, 2021). Depending on people’s interests in the Internet and their choice of websites, pricing strategies help companies adjust their marketing strategies, thus increasing their profits.
Reference
Ali, B. J., & Anwar, G. (2021). Marketing Strategy: Pricing strategies and its influence on consumer purchasing decision. International Journal of Rural Development, Environment and Health Research, 5(2), 26-39. Web.