Price positioning, also known as pricing positioning, refers to the strategy adopted by a retailer to set its prices in relation to those of its competitors. It involves determining where to position oneself in the market in terms of pricing.
Price positioning can help a company differentiate itself from competitors and attract target customers. “A retailer may choose to position itself as a low-price leader, offering prices lower than those of its competitors. This approach aims to attract price-sensitive customers but may require greater operational efficiency to maintain sufficient profit margins.
Conversely, a retailer may adopt a premium price positioning strategy, offering products at higher prices than its competitors. This can be justified by higher product quality, superior customer service, or a strong, reputable brand image.
