2.2.2 price Flashcards
1
Q
what are profit margins?
A
profit as a percentage of the selling price (one unit) or as a percentage of total sales revenue (for the business as a whole).
2
Q
influences on pricing strategy?
A
competition
market segment
stage in the product life cycle
costs
technology
branding
3
Q
what is price skimming?
A
setting an initial high price, then dropping it after a short period of time (for premium products)
4
Q
what is price penetration?
A
price initially set low to draw attention of customers, then increasing it
5
Q
what is competitive pricing?
A
inline with competitors
6
Q
what is predatory pricing
A
significantly undercutting competitors to put them out of business
7
Q
what is psychological pricing?
A
pricing something in order to make it seem cheaper than it is e.g £9.99 rather than £10
