#backward pricing

Marketing Keywords to Know: August 25, 2016

Backward Pricing 

Definition: Placing a high price on a product to research how much the consumer is willing to spend

  How much would you pay for a pair of headphones? Or a tablet?

Backward pricing is used often for items such as these, using a high selling price to see if the consumer will pay up. Pricing this way is helpful to gauge if the cost of production is viable and set a standard price…