Pricing Plateau

Posted in Marketing and Strategy Terms, Total Reads: 1091

Definition: Pricing Plateau

The pricing level which is dominantly affected by both the market and the product and above and below which sales volume experiences dramatic changes. These are specific with respect to a market or a product.

Also, this is a price level which is considered relevant and reasonable by the customers. It is a stage of no growth or decline. Brands tend to consider it as a reference level to set prices for their products. Customers perceive products which have prices above this level as high priced and less value for money. Whereas, a price below this is a discounted price which helps attracting more customers.

But this could also communicate a discounted brand image. Depending upon the product category, the market type, market size, customer segment, etc. pricing is done by the brands to avoid any risks associated with brand image.

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