MODULE 3 PART 4: Marketing Aspects of New Ventures (Pricing Strategies)

Question 1

(7) Most Common Pricing Strategies

Answer 1

1. Premium Pricing
2. Economy Pricing
3. Price Skimming
4. Penetration Pricing
5. Psychological Pricing
6. Bundle Pricing
7. Dynamic Pricing

Question 2

Price of a product or service is set to a high price point to create perception of higher quality. Often used on luxury brands or unique products.

Answer 2

• Premium Pricing

Question 3

Price of a product or service is relatively low and affordable. Targets customers who want to save as much money as possible. This pricing keeps the costs low to make the price low.

Answer 3

• Economy Pricing

Question 4

Initial price of the product or service is deliberately set high to generate maximum consumer interest. As more competitors enter the market, prices are lowered, creating even greater appeal.

Answer 4

• Price Skimming

Question 5

Initial price of the product or service is intentionally set low to swiftly enter a competitive market, gain loyal customers, and generate rapid sales with the plan to increase the price later.

Answer 5

• Penetration Pricing

Question 6

Price of product or service aims to influence consumer by using specific price points.

Answer 6

• Psychological Pricing

Question 7

This strategy is where multiple products or services are offered together at a discounted price. This is used to create illusion of a good deal.

Answer 7

• Bundle Pricing

Question 8

Price of a product or service adjusts in response to changing market conditions.

Answer 8

• Dynamic Pricing