Search your local newspaper for advertisements and examples of pricing strategies. If you do not have access to a local newspaper, search for a newspaper online. What are two pricing strategies that you found in the advertisements? Describe the function the price serves for each product or service.
The first ad is for a local photography place called Magenta Studio.
Their ad is in my opinion a Captive Product Pricing model.
The definition of this pricing model is "where products have complements, companies will charge a premium price where the consumer is captured." Essentially, the customer will pay a great price for the basic product, but then have to shell out a lot of money to get the full product.
Magneta is a well known studio in Montreal where they take exquisite pictures of babies, pregnant ladies, and families. The ad states, "Surprise your loved ones with a photo of the ones closest to their hearts or bring them with you for a memorable ...
Two pricing strategies are compared; the function of the price is discussed as well.