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Business firms use different marketing strategies depending on the size, time, and the types of products they deal in. The commonly used product marketing strategies include value pricing premium pricing , penetration pricing, price skimming and Price Discrimination. This strategy is applicable to products or services in their mature or declining life cycle stage. The reason is that, at this stage, the products and services have already built a strong brand identity. For example, the price of electricity is normally set relatively lower compared to other forms of energy because the cost of production is fairly lower, and its consumption is popular with customers. Penetration pricing involves setting exceptionally low prices for new product s or service s with a bid to gain popularity within the market Chantal, What is Price Discrimination.

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Third Degree Price Discrimination

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