32. Using The Marketing Mix: Pricing Flashcards
Price skimming
Entering the market with a high price to attract early adopters to recuperate high development costs
Penetration pricing
Below market pricing to gain a foothold in established and competitive market
Price leader
A product that has significant market share and can influence the market price
Price taker
Firm which sets the price of the same or similar level of those of the dominant firm in the industry
Pricing tactics
The manipulation of Price to achieve specific short-term objectives
Lost leaders
Product sold at less than the cost to attract customers to A product range
Psychological pricing
Do use of a number pricing to increase the value for money appeal of the product
Price elasticities of demand
The responsiveness of demand following a change in price
Price inelastic demand
The change in demand for a product changes relatively less than change in price
Price elastic demand
When the demand for a product changes relatively more than the change in price
Pricing strategies
Long-term pricing plans which take into account the objectives of the business and the value associated with the product
