PENETRATION PRICE STRATEGY EXAMPLE TRIAL

Related: What is psychological pricing? (With 10 strategies) Internet providers As a result, the new streaming platform becomes renowned among subscribers as the go-to platform for niche shows and movies and doubles its subscriber count.

PENETRATION PRICE STRATEGY EXAMPLE TRIAL

To compete with the other large streaming platforms, the new one offers a free trial period of three months after the initial sign up and £7.99 a month after that. For a streaming platform to make the most out of this strategy, it would need quality content that resonates well with the customers.Įxample: A new streaming platform offers customers a variety of niche television shows and movies. This trial allows customers to preview what type of content the streaming platform has and if the platform is right for the customer. Since the streaming industry has many high-level competitors with significant capital and resources, it can be difficult for new entrants to establish a market share. The streaming industry uses penetration pricing techniques regularly by offering customers a free trial period or a heavy discount. Here are seven examples in different industries to give you a reference of how businesses use this technique and if it may be appropriate for you to use in a business: Streaming platforms

Penetration pricing examples can help you to understand that while penetration pricing can be an effective marketing technique, certain situations benefit from it more than others.

Penetration price strategy example