Pricing Flashcards
1
Q
Main Factors for Pricing
A
- Competition & Elasticity
- Ease of comparison
- Preferences / WTP
2
Q
Penetration Pricing
A
- Secure position
- Gain market share
- Switching costs
- Entry deterrence
- Network externalities
3
Q
Price Skimming
A
- High consumer heterogeneity
- Durable products
- Requires high differentiation
4
Q
Price Discrimination
A
Price discrimination is a pricing strategy where a business charges different prices for the same product or service to different customers. This can be done based on a variety of factors, such as the customer’s location, age, income, or purchase history.
5
Q
Leaky Paywalls
A
- Retains Flexibility
- Allows for self-selection
- Does not shut off search & social
6
Q
Cheese Io
A
The question is not only about setting the right price, but also about deciding the right entry strategy.
=> Establish partnership with cheesemaker
