1.3.3 - price Flashcards
1
Q
types of price competition for existing product
A
- competitive
- predatory
- cost plus
- psychological
2
Q
competitive pricing
A
similar price to other products in market
3
Q
cost plus pricing
A
adding a % on how much it costs to make the product
4
Q
psychological pricing
A
price just below a round number
4
Q
pro/cost of cost-plus pricing
A
guaranteed a percentage of profit
required to have a level of differentiation
5
Q
eg of psychological pricing
A
£1.99 not £2
6
Q
types of price competition for new product
A
price skimming
predatory pricing
7
Q
price skimming
A
high price then lower price through product life cycle
8
Q
eg price skimming
A
iPhone 14 and 15 vs new iphone
9
Q
penetration pricing
A
start low and increase over time
9
Q
benefit of penetration pricing
A
gain market share and brand awareness along the way
