Pricing Strategies Flashcards
1
Q
What influences pricing-
A
- Competition
- Quality
- Cost of Production
- Design
- Trends
- Technology
2
Q
Price Skimming- Definition, Advantages and Disadvantages
A
-Setting a high price at launch of a new product
Adv- Recovers R+D costs quickly
Dis- Price may not be competitive and can be viewed as exploiting customers who buy it first
3
Q
Price Penetration, Cost-plus pricing, Loss leader, Competitve
A
Price penetration- Starting the product at a low price to gain customers
Cost-Plus- Selling a product for no less than the production costs
Loss leader- Selling a product at a reduced price below manufacturing cost to gain customers
Competitive- Charge a similar price to competitors
