Marketing 4

Question 1

what is price-penetration ?

Answer 1

=Offering lower prices

Question 2

Advantages of price penetration are:

Answer 2

=Builds customer loyalty

=Can help develop long-term profit

Question 3

Disadvantages of price penetration are:

Answer 3

=Lower profits made

=May be difficult to increase prices and customers may leave if prices change.

Question 4

What is competitive pricing?

Answer 4

=Setting similar prices with competitors.

Question 5

Advantages of competitive pricing:

Answer 5

=Competitive prices can attract customers

Question 6

Disadvantages of competitive pricing: (2r)

Answer 6

=Business will need to do research -consuming and costly can lead to increased costs and lower profits
=may be difficult to attract cutsomerzzz

Question 7

What are Loss Leaders?

Answer 7

=A loss leader is a product priced below cost-price in order to attract consumers into a shop or online store

Question 8

Disadvantages of Loss Leaders

Answer 8

=Risk in making a loss

Question 9

advantages of Loss Leaders

Answer 9

=Customer loyalty can be gained