Assalamualaikum and good day everyone.

Today, we’re going to talk about Price Adjustment Strategies — this means how companies change or adapt their prices based on certain situations or markets. There are four main types we’ll learn today: Psychological Pricing, Geographic Pricing, Dynamic Pricing, and International Pricing. Let’s go through them one by one, with examples to make it easier.

🧠 a. Psychological Pricing

This strategy is based on how customers feel about the price, not just the numbers.

Example:
A product is priced at RM9.99 instead of RM10.00. Even though it’s just one cent less, it feels cheaper to the customer.

Impact:

• Customer: Feels like they’re getting a better deal.

• Company: Can increase sales without giving big discounts.

🗺️ b. Geographic Pricing

This is when a company sets different prices depending on the location of the buyer.

Example:
A delivery fee may be RM5 in Penang, but RM10 in Sabah due to distance and cost of transportation.

Impact:

• Customer: May feel it’s unfair if they pay more based on where they live.

• Company: Covers additional costs based on delivery or distribution location.

💻 c. Dynamic Pricing

This strategy means prices change often, based on demand, time, or even competitor prices.

Example:
Ride-hailing apps like Grab may charge higher fares during peak hours or rainy weather.

Impact:

• Customer: May feel frustrated during high prices, but can save money during off-peak times.

• Company: Can maximize profit during high demand and still attract customers during quiet times.

🌍 d. International Pricing

This happens when a company sells the same product at different prices in different countries.

Example:
A smartphone might cost RM3,500 in Malaysia, but USD1,000 in the USA, depending on taxes, currency, and market conditions.

Impact:

• Customer: Might feel local pricing is too expensive compared to other countries.

• Company: Adjusts prices to suit each market’s economy and competition level.

🎓 In conclusion, companies don’t just set one price and leave it. They must think about the customer, location, timing, and even emotions when adjusting prices. This helps them remain competitive, profitable, and relevant in the market.

Thank you, and I hope now you understand how Price Adjustment Strategies work in the real world.