With the introduction of advanced network facilities and features including GPS, Geolocation has become an ingenious resource that can use GPS, cell phone towers, Wi-Fi access points, or a combination of these to locate a device. Geolocation or geo-tracking uses positioning systems to track an individual’s location down to latitude and longitude coordinates—or, more accurately, a physical address since the use of smart devices has elevated in the recent past. Geolocation can be used by desktop and mobile devices alike.
Geolocation can be used in many different ways. The country, region, state, city, and postal code can all be identified using IP addresses. It can be utilized for the purpose of tracking shipments of cargo or wildlife by determining the time zone and precise positioning coordinates over the web. You’ve used geolocation services if you’ve ever done online shopping and wanted to find something in a nearby store, ordered food online after looking for a nearby restaurant or looked for the closest ATM.
What Does Geolocation Pricing Mean?
The practice of adjusting an item’s sale price based on the buyer’s location is known as geographic pricing. The cost of shipping the item to that location can sometimes account for the difference in the sale price. In any case, the distinction may likewise be founded on what sum individuals in that area will pay. Geographic pricing contributes to businesses’ efforts to maximize revenue in the markets in which they operate.
This is done for the following reasons:
- Attempting to determine a product’s market demand and the price point at which it sells best in particular locations. While consumers in less affluent areas may be more price-sensitive, they may be looking for quality and willing to pay more for one location.
- Enhancing the appeal of products and boosting conversion rates among savvy customers. This is accomplished by providing users who have recently visited price comparison websites or competitors with offers that are more affordable.
- Pricing can vary by zip code at some retailers. Prices will be higher for those residing in higher-earning zip codes and lower for those residing in lower-earning zip codes. Taking advantage of the buying power and willingness to pay higher prices of wealthy individuals.
Pros Of Maneuvering Geolocation Pricing
Let’s explore the sheer benefits that companies obtain from applying geolocation pricing –
- Decreased operational expenses – Businesses can save money on shipping, freight, and other transportation costs by employing a geographical pricing strategy tactically.
- Market expansion – Businesses can increase their ability to expand into new markets by employing different geolocation pricing strategies.
- Earning customer trust – Increasing the trust and satisfaction of your customers can be aided by localizing your prices. Customers from different parts of the world may be more likely to stick with a company or recommend it to others in their area if they think it is trustworthy.
- Earn profit – Businesses can maximize profits in each region by setting different prices for different regions. This can assist with expanding an organization’s general income and permit it to extend or additionally foster its business gradually.
