1.3.3 Pricing Strategy Flashcards
What is Cost Plus ?
Where a business sets its price based on the cost of the product
What is Price Skimming?
This is where a high price is set initially ,then over the time the price is slowly reduced.
What is Penertraction Pricing?
This is where a low price is initially set to enter the market.Once the product is established in the market the price is raised to cover the costs.
What is Predatory Pricing?
The aim of this strategy is to set a low price to try to drive competitors out of the market.
What is Competitive Pricing?
This is where the price of the product is similar to those of their competitors on the market.
What is Psychological Pricing?
This is where prices are made to look cheaper than they really are.
Instead of £900 businesses will charge £899 so that it looks a lot cheaper for the consumer.
What is Personalised Pricing?
This is a strategy that makes use of computer based cookies and AI algorithms to find what each customer is willing to pay.
