Pricing Flashcards
1
Q
What are the pricing strategies?
A
- cost plus
- Price skimming
- Penetration pricing
- Predatory pricing
- Competitive pricing
- Psychological pricing
2
Q
What is cost plus pricing?
A
A simple markup on unit costs
3
Q
What is price skimming?
A
Putting a high price on a new product to maximise new short term revenue
4
Q
What is penetration pricing?
A
Charging a short term low price to get a market foothold
5
Q
What is predatory pricing?
A
Charging a very low price for a period of pricing for a short time period to drive out competitors
6
Q
What is Competitive pricing?
A
Intentionally charging the same or less as competitors.
7
Q
What is psychological pricing?
A
E.g. £19.99 instead of £20, to give the impression of a cheaper price.
