Any B2B or B2C company faces the complex problem of pricing products to generate maximum conversions. Different products might require different strategies, and company decision-makers might need to experiment with pricing strategies to find the best approach for each marketing channel. Marketing any product or service takes a studied approach that includes managing the product, pricing, place and promotion.
Product, Pricing, Place and Promotion
The four Ps, product, pricing, place and promotion, have been known as key elements of marketing since the 1950s when Neil Borden introduced the concept.  Products refer to the goods and services a company markets, and pricing is a key factor depending on product quality, exclusivity, low price or premium price.
Place is where a given company sells its products, and in today’s online marketing, that might include many channels such as the company website, social media pages, brick-and-mortar locations and marketplace platforms like Amazon and eBay. Many products bearing the company’s brand are sold in multiple retail locations and online stores. Promotion includes all the advertising, incentives, public relations and promotional strategies a company uses to “sell” the product. All of the four Ps are linked to price, and the following pricing strategies are some of the most popular among e-commerce companies:
1. Marketing Penetration Pricing Strategy
Marketing penetration pricing ranks as one of the top strategies used by online businesses. The premise is simple – products are priced low to attract more site visitors or B2B decision-makers to lure customers with lower prices. The technique targets price-comparison buyers, but the need to price all items low is not necessary. Examples of companies that use this strategy include Kroger, Sam’s Club, Walmart and Costco, businesses which use low prices to increase their market share and attract regular customers. 
The method works well for companies that have new products or products that require buying additional supplies such as videos, games, food, etc. Most eCommerce companies can offer products for sale at only a little above margin to penetrate the market and make a profit from accessories, supplies and luxury products that are also available. This is similar to offering loss-leader items, such as bread and milk for sale at prices below costs.
2. Market Skimming Pricing Strategy
This strategy is an approach almost directly opposite to that of price penetration. Marketers set high prices for high-end products and services to get as much profit as possible from early buyers, those who often enjoy showing off expensive products and top brand names. Essentially, e-commerce companies skim the market to capture the cream, those willing to spend top dollar.  Phone manufacturers commonly use this technique for phones with new features, and people get on waiting lists to be among the first to use new phone technology.
After sales begin to slip, companies adjust their plans by offering different versions of the product and lowering the cost of the original to make it appealing to bargain shoppers.
3. Psychological Pricing Strategy
Psychological pricing has been a common practice in business for centuries, and the technique works just as well in online sales as it does in brick-and-mortar companies. The premise involves that classic practice of not rounding off numbers and usually charging a penny less – such as $19.99 instead of $20. 
The benefits of psychological pricing include making the prices fit into lower price bands. For example, there might be groupings of products priced between $300 and $400 or $400 and $500. By pricing a product at $399.99, it fits into the lower band. Walmart uses a unique technique by pricing items at nontraditional prices such as $4.32 instead of $4.39. Choosing not to use the “9” or “8” as the last digit makes people feel that Walmart is charging prices based solely on costs.
Psychological pricing also generates benefits for brick-and-mortar operations. Prices ending in $.98 and $.99 are hard to calculate for employees who want to steal funds with cash-manipulation techniques.
4. Premium Pricing Strategy
The premium pricing strategy works for high-end goods and luxury items because it delivers bragging rights to people who try to buy the best quality goods and services. This strategy takes some company positioning to work successfully. If a company has a history of marketing low-end goods and bargain-priced products, it can be difficult to change the company’s reputation to that of a premium provider. 
It’s important to explain why the company’s goods cost more. For example, a restaurant can mention that they use organic produce from local farms and classic preparation techniques, such as the Cajun method of adding raw, sautéed and blackened vegetables to create layers of flavor. That sounds worth paying a little extra, doesn’t it?
Companies might need to retool to target the premium market, but there can be big benefits of doing so. These e-commerce companies earn higher profit margins, and their customer bases remain very loyal when compared to the typical e-commerce customer looking for bargain prices.
5. Bundle Pricing Strategy
There’s a solid reason why so many companies offer bundled products and services. The strategy works because many consumers – and even professional B2B buyers – are influenced by discounts on multiple products. Bundling is an excellent way to sell off slow-moving inventory or products that will soon be replaced with newer versions.
The approach can turn a negative into a positive – for example, a game console is virtually useless without compatible games, but the games cost quite a lot. By bundling the console with several games, parents feel that they’re getting a bargain, but the truth is more likely to be that the games just whet their kids appetites for better and more expensive games.
Most bundle packages make money by giving the customer a mix of desirable products and products that most people will seldom use. E-commerce companies can offer bundles that genuinely benefit the customer, a build-your-own bundle option or bundles that help move dead inventory.  Another popular option is to offer several prepackaged bundles to give customers some feeling of choice when receiving an incentive.
How to Manage Pricing Strategies Effectively
How an e-commerce company manages pricing strategies varies tremendously across industries and targeted customers, but the important thing is to consider the psychology. All effective pricing is based on psychological triggers, and companies just need to determine what drives their best customers regardless of whether they’re retail customers or B2B buyers of products for resale.
Some adjustments might be obvious when dealing with retail or wholesale customers. B2B buyers might prefer high-end merchandise or bargain items they can get at a low price. Incentives for buyers might include personal recognition, season tickets to the local sports franchise, product accessories or high-end samples of other products. The most successful companies are able to put themselves into the customer’s shoes so that they can put the customer into their shoes.
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References: Investopedia.com: What Are the 4 Ps?
https://www.investopedia.com/terms/f/four-ps.asp  Investopedia.com: Penetration Pricing
https://www.investopedia.com/terms/p/penetration-pricing.asp  Businessdictionary.com: Market Skimming Pricing
http://www.businessdictionary.com/definition/market-skimming-pricing.html  Accountingtools.com: Psychological pricinhttps://www.accountingtools.com/articles/2017/5/16/psychological-pricingg
https://www.accountingtools.com/articles/2017/5/16/psychological-pricing  Accountingtools.com:Psychological pricing
https://www.accountingtools.com/articles/2017/5/16/psychological-pricing  Hbr.org: The Pros and Cons of Bundled Pricing