Pricing Strategies Flashcards
1
Q
Value-Based Pricing
A
Set prices based on what customers think your product is worth.
2
Q
Competitive Pricing
A
Set prices based on what your competitors are charging.
3
Q
Price Skimming
A
Start with high prices and gradually lower them.
4
Q
Cost-Plus Pricing
A
Simple strategy: add a percentage to the production cost.
5
Q
Penetration Pricing
A
Offer lower prices than competitors to gain a foothold in competitive markets.
6
Q
Economy Pricing
A
Price products cheaper than competitors, relying on increased volume to make up profits.
7
Q
Dynamic Pricing
A
Constantly adjust prices based on demand.
