Pricing

Question 1

Pricing techniques

4

Answer 1

Cost based price
Demand based pricing
Competition based pricing
Combination pricing

Question 2

Cost based pricing

Answer 2

Used for the setting of the price

Cost price +profit

Question 3

Demand based pricing

Answer 3

The greater the demand the greater the business is going to charge

Question 4

Competition based pricing

Answer 4

Use competitors price as an indication to set price

Question 5

Combination pricing

Answer 5

Combination of all the techniques given

Question 6

Factors affecting selling price

6

Answer 6

Price discrimination 
Perceived value 
Loss leaders 
Baite pricing 
Penetration
Psychological price

Question 7

Price discrimination

Answer 7

Only certain people can purchase products / service

Question 8

Perceived value

Answer 8

Items come in larger quantities but make larger quantities cheaper to convince you to buy it

Question 9

Loss leaders

Answer 9

When business struggles they reduce price

Question 10

Baite pricing

Answer 10

False advertising to make you buy the product but they don’t have it

Question 11

Penetration

Answer 11

Come in cheap but as demand increases price increases