price Flashcards
what is price skimming
price skimming is where firms set a high initial price for a product and then overtime this price in lowered in order to keep demand high
what is penetration pricing
penetration pricing is the opposite of price skimming and is where sa firms sets a low inital price in order to attract customers and then when they have built up a large customer basis they will increase price
what is preditory pricing
when larger business’s deliberatly lower their prices (possibly to the point of making a loss) in order to force smaller business’s who cannot compete on price out of the market
what is competative pricing
carefully analysing the price set by competitors and strategically setting ones own price lower or the same.
what is dynamic pricing
changing price alot depending on demand time of year or competirors extra
