Marketing Mix: Price Flashcards
Is a pricing tactic for the long or short term?
Short term.
Is a pricing strategy for the long or short term?
Long term.
Name two pricing tactics
Skimming and penetration pricing.
Name two pricing strategies
Loss leaders and psychological pricing.
Define price discrimination
Price discrimination means charging different customers different prices.
Give two examples of price discrimination
Buying flights in advance (they change price up until the flight), charging different prices according to age/social status
What is an advantage of price discrimination?
An advantage of price discrimination is that it allows companies to respond quickly to changes in demand
What is a price leader?
A price leader is an existing brand in a powerful position, other brands follow their pricing.STRATEGY.
What is price taking?
Price taking is where buyers dictate the price they are willing to pay. STRATEGY.
What is predatory pricing?
Predatory pricing is where a powerful business deliberately lowers their prices to push another business out of the market. STRATEGY.
What is competitive pricing?
When companies monitor their competitors prices to make theirs equal or lower. STRATEGY.
What is psychological pricing?
It helps attract customers. It is based on their expectations, selling something for £99.99.
What are loss leaders?
Loss leaders are products that deliberately make a loss by being sold at below cost price to entice customers to buy other things.
What does price elasticity of demand show?
It shows how demand changes with price.
What does it mean if a product is elastic?
Demand will be affected by a change in price.
