Marketing mix: Price

Question 1

Early adopters

Answer 1

Consumers who are keen to buy a good when it is first released.

Question 2

Cost-plus pricing

Answer 2

Adding a percentage to the costs of making the product to get the price

Question 3

Penetration pricing

Answer 3

Setting a low price to start with in order to get established in the market; price may be raised once established

Question 4

Competition-based pricing

Answer 4

Pricing strategies based on the prices changed by rivals. May lead to price war.

Question 5

Predatory pricing

Answer 5

Setting a low price until rivals have gone out of business.

Question 6

Skimming

Answer 6

Setting a high price initially then lowering it later when patents are lost or market has been fully explored.

Question 7

Promotional pricing.

Answer 7

Decreasing the price of a good temporarily or permanently to attract consumers. Can include discounts, psychological or loss leaders.