Intro to Pricing Strategy

Question 1

• 3 Principles of Pricing Strategy
• Va l u e - b a s e d
• Proactive
• Profit-driven
• Strategic Pricing Pyramid
• Implementing the Pricing Strategies

Answer 1

Strategic Pricing

Question 2

defined as the amount of money that you charge for your products, but
understanding it requires much more than that simple definition.

Answer 2

Pricing

Question 3

process or methodology used to determine prices for products and services.

Answer 3

Pricing Strategy

Question 4

portrays value

Answer 4

winning pricing strategy

Question 5

convinces customers to buy

Answer 5

winning pricing strategy

Question 6

gives your customers confidence in your product

Answer 6

winning pricing strategy

Question 7

doesn’t accurately portray the value of your product

Answer 7

weak pricing strategy

Question 8

makes customers feel uncertain about buying

Answer 8

weak pricing strategy

Question 9

targets the wrong customers

Answer 9

weak pricing strategy

Question 10

Setting new product prices high and subsequently lowering the price as competitors enter the market

Answer 10

Skimming pricing
strategy (also called
pricing skimming or
skim pricing)

Question 11

Pricing products based on the price of
competitive products, rather than cost or
target profit; usually cheaper than
competitors

Answer 11

Competitive Pricing Strategy

Question 12

Pricing that varies based on marketing and
customer demand

Answer 12

Dynamic Pricing Strategy

Question 13

Pricing a product based on how much the
customer believes it’s worth

Answer 13

Value-based pricing strategy

Question 14

Entering a market at a low price and
increasing prices over time

Answer 14

Penetration Pricing Strategy

Question 15

Pricing a product low because of low costs of
production, marketing, and advertising, and
relying on high sales volume to generate profit

Answer 15

Economy Pricing Strategy

Question 16

Pricing a product deliberately high to
encourage favorable perceptions of the brand
based on the price

Answer 16

Premium pricing strategy

Question 17

Adding a fixed percentage on top of the cost of
producing a product, regardless of consumer
demand or competitors’ pricing

Answer 17

Cost-plus pricing strategy

Question 18

Offering a product for free alongside paid
versions with more features

Answer 18

Freemium pricing strategy

Question 19

Pricing each finite service or project on a case-
by-case basis according to the value of the
outcome instead of on the time spent to
complete it

Answer 19

Project-based pricing strategy

Question 20

uses production cost as its basis for
pricing and, to this base cost, a
profit level must be added in order
to come up with the product price.

Answer 20

Cost-based pricing strategies

Question 21

The floor and ceiling are the
minimum and maximum prices for a
specific product or service

Answer 21

Price Range

Question 22

Also known as customer-based pricing.

Answer 22

Value-based pricing strategies

Question 23

pricing concept which is defined as the setting of a product’s price based on the benefits it provides to consumers.

Answer 23

Value-based pricing strategies

Question 24

also known as competitive pricing

Answer 24

Competition-based pricing strategies

Question 25

consists of setting the price of a product based on what the competition is charging.

Answer 25

Competition-based pricing strategy

Question 26

refers to how much is charged for a product or services

Answer 26

Price