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Pricing Strategies in Advertisements

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.

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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 ...

Solution Summary

Two pricing strategies are compared; the function of the price is discussed as well.