Pricing Strategies Flashcards
What is Predatory/Destroyer Pricing?
Predatory Pricing is where a very low price is set in order to drive competitors out of the market
What is Cost Plus Pricing?
Cost Plus Pricing is where the price is related to the costs of production.
(for example, the cost to produce each unit plus 30 percent for profit)
What is Penetration Pricing?
Penetration pricing is where a low initial price is set in order to win an early share of the market
What is Premium Pricing?
Premium Pricing is where a higher than average price is set to signal that the product is a superior or luxury one
What is Skimming Pricing?
Skimming pricing is where price is set high when the product is first launched and is then reduced progressively in order to win new groups of customers
