Pricing Strategies Flashcards
1
Q
Define Competitive Pricing
A
The price of a product is set similar to the competitors
2
Q
Define skimming pricing
A
The price is set high to begin with and lowers over time
3
Q
Define penetration pricing
A
The price is set low to begin with and increases over time
4
Q
Define price discrimination
A
Prices are altered depending on a discriminating factor eg age
5
Q
Define destroyer pricing
A
The price is deliberately set extremely low for a period of time to force out competitors
6
Q
Define low pricing
A
The price is permanently set lower than competitors eg primark
7
Q
Define Premium pricing
A
The price is permanently set higher than that of competition
8
Q
Define Cost Plus Pricing
A
The business calculates the unit cost of a product, then adds a percentage mark up for profit
