30) Price Flashcards
What must the price of a product or service do?
Customers must be willing to pay it
It must meet all the costs of the business
It must enable the business to make a profit
What is penetration pricing?
This is used when a business wants to enter a market where there are lots of competitors selling similar products and they will set their price very low to begin with
What is destroyer pricing?
This is used to eliminate the competition prices are lowered and competitors cannot compete and are forced to leave the market
What is premium pricing?
When high prices for a product are set and kept high to create a high class image
What is competitive pricing?
This is a strategy that encourages businesses in the same market to charge similar prices preventing a price war
What is price discrimination?
When a business charges different prices for the same product at different times of the year or day
What is market skimming?
When a business puts a new product on the market at a high price aiming to make a really high profit to cover the cost of researching and designing
