Marketing - Price - Pricing Strats

Question 1

Name the 10 pricing strategies

Answer 1

1. Psychological pricing
2. Premium pricing
3. Price skimming
4. Cost-Plus pricing
5. Low pricing
6. Penetration pricing
7. Destroyer pricing
8. Competitive pricing
9. Promotional pricing
10. Price discrimination

Question 2

Describe Psychological pricing

(pricing strat)

Answer 2

The price is set just below a whole number to make it seem cheaper

Question 3

Describe Promotional pricing

(pricing strat)

Answer 3

The price is reduced for a short period of time

Question 4

Describe Destroyer pricing

(pricing strat)

Answer 4

The price of a product is set much lower than competitors so they can’t compete

Question 5

Describe Price - skimming

(pricing strat)

Answer 5

A new product enters the market at a high price then lowers over time

Question 6

Describe Penetration pricing

(pricing strat)

Answer 6

Price is set low when entering the market then rises once the product becomes popular with customers. Used in a market with lots of competitors.

Question 7

Describe Cost - Plus pricing

(pricing strat)

Answer 7

The cost to make the product is calculated then a % of profit added to create the price

Question 8

Describe Competitive pricing

Answer 8

Businesses charge the same price as their competitors then compete on factors other than price

Question 9

Describe Price - Discrimination

Answer 9

A business charges different prices for the same product or service at different times of the day/ year

Question 10

Describe Premium pricing

Answer 10

Price is set higher than competitors to achieve the image of quality