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Marketing Strategy: Nike's Cost-Based Pricing Strategy

745 Words3 Pages

Price
Nike applies a premium pricing technique. The type of good that will be advertised is going to influence the price of a product. Nike utilizes vertical integration in pricing wherein they claim members at differing channel levels or participate in more than one channel level operations. This is additionally an endeavor to control expenses and impact evaluating practices. Nike 's pricing is intended to be aggressive to the other fashion shoes retailers.
The pricing is focused around the premise of premium fragment as target clients. Nike as a brand charges high premiums. Most individuals will pay top dollar for the Nike 's items. The cost of the items is variable relying upon the sort and the size; for instance an agreeable and great pair of shoes would cost from INR 1800 to 5000 whereas Reebok price range starts from INR 990. This is the reason why Nike uses cost based pricing. It is intriguing to realize that numerous different organizations that contend with Nike have observably lower costs. This does not deflect individuals from acquiring the Nike item for a couple of reasons. Not only does Nike have quality items, wearing Nike says something in regards to who you are. It uses psychological pricing strategy because consumers think that they are of better quality than others. It is just about like a materialistic trifle telling everybody who sees you wearing the item that you are monetarily equipped for wearing such an item. This is an inner self support for the

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