Pricing strategy's Flashcards
1
Q
What is cost plus pricing?
A
It involves adding a mark up to unit costs which is usually a % of the costs
2
Q
What is price skimming?
A
When a business launch a products into a market charging a high price for limited time
3
Q
What is penetration pricing?
A
Charging a low price for a limited period
4
Q
What is predatory pricing?
A
Aims to eliminate competitors, they charge a very low price for a period
5
Q
What is competitive pricing?
A
Charge the same as competitors
6
Q
What is psychological pricing?
A
Set prices slightly below a round figure, eg; £9.99
