Explain the various pricing strategies and tactics and provide examples of when each should be used

There are four common pricing strategies and tactics. These strategies include value-based, cost-plus, penetration pricing, and price skimming. Cost-plus pricing involves setting high prices when defining the criterion. This pricing type is used in industries with a strong competitive advantage, such as Gillette in the blades industry. Penetration pricing involves setting low prices to gain market share, such as a firm giving out loans at intense interests. Value-based pricing involves setting no-frills prices, such as considering short marketing and advertising costs. Price skimming consists of charging high prices and lowering them upon gaining competitors. For example, when china's phones were offered cheaply and increased the prices over time to compete with larger brands.