Pricing strategies Flashcards
1
Q
competition based pricing
A
setting a price close to competitors
2
Q
advantages of competition based
A
more expensive than competitors, they may think competitors quality is shite, if its cheaper, make more sales
3
Q
disadvantages of competition based
A
may not be any suitable competitors
wont work for small firms
4
Q
penetration pricing
A
initial low cost, to attract customers
5
Q
advantages of penetration
A
attracts lots of early attention, helps gain long term profit
6
Q
disadvantages of penetration
A
low initial revenue
may refuse to buy when price goes up
