pricing methods Flashcards
1
Q
skimming
A
a high price is charged for a new, better product to make a large profit, then the price is reduced when competitor products start to be sold
2
Q
cost-plus pricing
A
the cost of the product is calculated and then an amount of profit is added to decide the price.
3
Q
promotional pricing
A
the price is lowered to persuade customers to buy stock that remains
4
Q
competitor pricing
A
a business looks at the prices charged by competitors before deciding its price.
5
Q
penetration pricing
A
a low price is charged for a new product to persuade customers to try it. The price will increase when sales have grown.
