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Category Pricing
Definition
The approach to setting and managing prices across all products within a retail category to achieve category-level objectives such as profitability, competitiveness, and shopper value perception. Category pricing considers price tiers, competitive benchmarks, and promotional strategy, not just individual item pricing.
How It's Calculated
Example
A retailer adjusts category pricing in the pasta aisle by maintaining entry-level price points on core items while allowing premium brands to carry higher everyday prices, supporting margin and shopper choice.
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