4Ps of Marketing: Price Flashcards
The only element of the marketing mix that generates turnover.
Price
A product’s worth as perceived by customers.
Value
Sensitivity of customers to price changes.
Customer Demand
Price increases → demand drops.
Elastic Demand
Demand remains steady despite price changes.
Inelastic Demand
Initial high price due to competitive advantage.
Price Skimming
Used for new, innovative, or prestigious products.
Price Skimming
Low initial price to gain market share quickly.
Penetration Pricing
Minimal costs → Low prices.
Common in generic brands.
Economy Pricing
High price for high-perceived-value products.
Premium Pricing
Small businesses match the pricing of larger competitors.
Follow-the-Leader Pricing
Standard price with discounts for bulk buyers or negotiators.
Variable Pricing
Different price categories for similar products (e.g., suits at $250, $400, $800).
Product Line Pricing
Combining multiple products for one price.
Product Bundle Pricing
Prices designed to trigger emotional responses.
Psychological Pricing
