Price

Question 1

what are the P’S

Answer 1

product, place, price promotion

Question 2

definition of price

Answer 2

The amount the customer is prepared to pay for a product or service (how much a business charges their customers)

Question 3

factors to determine price (6)

Answer 3

target market
-if the target market is students, price cant be too high

type of product being sold
-high tech products will likely be more expensive

cost to produce product
-costs more to make, higher price

how much profit
-if they want 20% profit, they’ll price accordingly so

how much competitors charge
-when starting a business you would base your price on competitors price

the image, reputation and quality they want to promote
-businesses can base their price on the reputation they want

Question 4

what are the pricing strategies (3)

Answer 4

competitive, low and premium pricing

Question 5

what is competitive pricing

Answer 5

Some businesses in the same market price products similarly to avoid a price war e.g. petrol

Question 6

what is low pricing

Answer 6

price set deliberately low in order to attract mass amount of customers

Question 7

premium pricing

Answer 7

high prices are set high to create a exclusive image