pricing strategy Flashcards
1
Q
name the different strategies
A
price skimming, price penetration, predator pricing, competitive pricing, psychological pricing
2
Q
price skimming
A
Setting a high initial price to then reduce the price over time
3
Q
price penetration
A
Setting a low initial price to then increase it overtime
4
Q
the difference between price takers and price mergers
A
price takers- business who look at other firms to set their own prices
price makers- the business that others look at for inspiration
5
Q
competitive pricing
A
rivals charging similar prices (ie. ALDI vs LIDL)
6
Q
psychological pricing
A
setting the price at a rounded number (ie. only £1.99)
7
Q
predator pricing
A
setting low price to get rid of conpetition
