pricing stratagies Flashcards
1
Q
what are the 5 pricing stratagies?
A
.premium
.skimming
.competitive pricing
.penetration
.cost plus
2
Q
premium
A
A goods price is set at a higher price than competitors to give a perception of high quality.
3
Q
skimming
A
a pricing strategy that sets new product prices high and subsequently lowers them as competitors enter the market.
4
Q
competitive pricing
A
base prices are set lower or same as competitors
5
Q
cost plus
A
based on calculating the cost of producing the item and then adding on the percentage profit required by the company (+20% from £3)
6
Q
penetration
A
the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, to attract new customers.
