Pricing Methods Flashcards
1
Q
Cost-plus Pricing
A
Cost of production + profit margin
2
Q
Penetration Pricing
A
Setting a low price to enter a new market
3
Q
Price Skimming
A
High price set for a new product
4
Q
Competitive Pricing
A
Priced just below the competitors price
5
Q
Promotional Pricing
A
Low price set as a short term measure
6
Q
Marginal Cost pricing
A
Pricing based on additional cost of producing an extra unit of output
7
Q
Predatory Pricing
A
Temporary reduction in price to force rivals out of the industry
8
Q
Price Discrimination
A
Different prices charged in different markets for the same product
9
Q
Psychological Pricing
A
Using $ 9.99 to make it seem lower.
