Pricing Flashcards
1
Q
Name the four pricing strategies
A
Competitive, psychological, skimming and penetration
2
Q
If a car costs £9,999 which pricing strategy is used?
A
Psychological pricing
3
Q
When a new iPhone is launched at a premium price, greater than its competitors, which pricing strategy is used?
A
Price skimming
4
Q
When a business wants to undercut their competitors prices, which pricing strategy is used?
A
Price skimming
5
Q
Why are pricing strategies important?
A
- So a business is able to target the right customers
- To try and increase sales
- To try and increase revenue
6
Q
What are the consequences of using the wrong pricing strategy?
A
- The business may fail to encourage sales
- The business may choose alternative competition
