Pricing Strategies Flashcards
1
Q
Cost based pricing
A
Where costs are used as the starting base for prices
2
Q
Competition based pricing
A
Where the number of competitors influence the price
3
Q
Psychological pricing
A
Where prices are set to influence customer perception
E.g £9.99
4
Q
Penetration pricing
A
- Charging an initially low price to gain market share which can then be raised
- Used to establish a new product
5
Q
Market skimming
A
- Charging a high price when the product is unique
2. maximises revenue whilst customers have no alternative
6
Q
Discounts and sales
A
Used to sell discounted infasionable good
7
Q
Loss leader pricing
A
Used to attract customers into store
8
Q
Demand based pricing
A
Where price is reflective of demand
