What is a Micro-Investing Platform? A micro-investing platform is an application that eases the process of investment by enabling users to save and invest small amounts of money periodically. Micro-investing platforms are different from conventional investment schemes in the sense that there is no minimum limit on the amount that can be saved. Also, they…
What is Systems Thinking? Systems thinking is an approach to analysis that zeros in on how the different parts of a system interrelate and how systems work within the context of other, larger systems. It is a holistic approach that can be used in many areas of research. It can be useful in analyzing a…
What is the Boston Consulting Group (BCG) Matrix? The Boston Consulting Group Matrix (BCG Matrix), also referred to as the product portfolio matrix, is a business planning tool used to evaluate the strategic position of a firm’s brand portfolio. The BCG Matrix is one of the most popular portfolio analysis methods. It classifies a firm’s…
What is Loss Leader Pricing? A loss leader pricing strategy, a term common in marketing, refers to an aggressive pricing strategy in which a store prices its goods below cost to stimulate sales of other, profitable goods. With such a pricing strategy, a business is selling its goods at a loss to lure customer traffic…
What is Penetration Pricing? Penetration pricing is a pricing strategy that is used to quickly gain market share by setting an initially low price to entice customers to purchase. This pricing strategy is generally used by new entrants into a market. An extreme form of penetration pricing is called predatory pricing. Rationale Behind Penetration Pricing…
What is Guerrilla Marketing? Guerrilla marketing refers to an advertising strategy that focuses on using low-cost marketing techniques to generate maximum exposure for a product or service. The term “guerrilla marketing” was used in the 1984 book, “Guerrilla Advertising”, by American business writer Jay Conrad Levinson. Due to the emergence of the internet, guerrilla marketing…
What is Price Skimming? Price skimming, also known as skim pricing, is a pricing strategy in which a firm charges a high initial price and then gradually lowers the price to attract more price-sensitive customers. The pricing strategy is usually used by a first mover who faces little to no competition. Price skimming is not…
What is Price Discrimination? Price discrimination refers to a pricing strategy that charges consumers different prices for identical goods or services. Different Types of Price Discrimination 1. First Degree Price Discrimination Also known as perfect price discrimination, first-degree price discrimination involves charging consumers the maximum price that they are willing to pay for a good…
What is Price Fixing? Price fixing refers to an agreement between market participants to collectively raise, lower, or stabilize prizes to control supply and demand. The practice benefits the individuals or firms involved in setting the price and hurts consumers and firms on the receiving end. Why is Price Fixing Illegal? Under Canadian and United…
