Hello to everyone, especially to PhoenixDown and Pulse...

Thank you very much for the instant replies. I think what both of you said does have a good point in setting the price strategies. One must consider the market segementation - who are the target market, who are the purchasing group, and what is the level of their income to see if they can afford the product/service. If you're targeting the low income group,you might want to set low prices and produce in large volume. Customers will buy the goods when there's big discounts or sales gimmick (E.g. Buy 1 get 1 free, free toys or samples included with goods) offered. However, the customers will perceived these cheap goods are bargainable and of lower quality. This might affect the company's reputation in the marketplace, regardless of whether the company is using a one-line distribution or diversified one. (i.e Different goods sold from the same company.) RHYTHM Distributors Pty. Ltd. is an example of diversified distributional company. (It sells stationery supplies to reference books and music books). Click here to find out or copy-and-paste on another browser: http://www.rythm.com.my

This goes the same for the prestige pricing (in a vice versa way). High-priced goods will be perceived as of higher quality, nett price, non-bargainable types. Therefore only the high-class people can afford to buy. Quantity of the products/services may also be limited and discounts rarely offered unless these buyers become an exclusive member of certain shops or retail outlets that sell these goods or service.

However, this is just a matter of opinion and based on my studies alone. Any comments anyone like to add to my post? I'd welcome to it. Thank you for reading.