Pricing Flashcards
You are charging artificially low price in order to gain a quick market share. (Communications, cable or satellite …)
Penetration princing
In supermarket, there’s very often a no frills (pas de fioritures) or economy range (ex budget airlines)
Economy pricing
Similar to premium pricing. Once the product is launched, price is kept very high while it is quite rare
Skimming pricing
Price is used as a trigger (element declancheur)
Prix magique
Psychological price
A number of product are price differently because there is an entire range. Each product might be priced in order to get market share. Even if some products are more expensive to make the company sure the profit is made on the range: they will make a less on some items and make a profit on others
Product line pricing
An item has a single price and then you need to buy add ons and these are optional products, which are priced very expensively
Optional products
You have no choice but to pay
Captive product pricing
Buying products together (ex games or dvd)
Product bundle pricing
There are many examples : 50% off, discounts, buy 1 get 1 free
Promotional pricing
Prices changes in order to fit with a particular market place
Geographical pricing
It is very similar to economy approach except you often tend to get it in times of recession
Value pricing
You have a competitive advantages, you can charge what you like for the product. Large brands (ex: airlines)
Premium pricing
