What is Pricing Strategy

Globalization seems to have achieved ultimate penetration—the plethora of choice a consumer faces in any given product or service is only a testament to the fact. Worldwide, consumers are presented the options to choose between store brands (or generic/local brands, as they are sometimes known) and national brands. The choices consumers make are reflective of their perceptions about either brand and thus provide an insight into the perceived risks that consumers associate with store or national brands. This risk creates an uncertainty of consumer base and threatens the stability of market shares for brands. The chapter aims to study the various perceived risks consumers associate with brands across two product categories: consumer goods and hedonic goods. Consequently, solutions to change consumer perceptions or brand strategies have been provided so that brands may be able to reduce perceived risk associated with themselves and create a stable consumer base.