pricing strategy - theme 1.3 (book3) Flashcards
product life cycle shows the different ______ that a ______ passes over ______ and the ______ that can be ______ at each stage.
product life cycle shows the different stages that a product passes over and the sales that can be expected at each stage.
cost plus is when a ____-______ is added to the cost of _____ to calculate the _____.
cost plus is when a percentage mark-up is added to the cost of production to calculate the price.
price _____ is when a high initial price is set for a new product.
price skimming is when a high initial price is set for a new product.
penetration pricing is when a ___ initial price is set for a new product to get a ____in the market.
penetration pricing is when a low initial price is set for a new product to get a foothold in the market.
_________ pricing is when prices are set ___ for a short period of time to force _____ out of the market.
penetration pricing is when prices are set low for a short period of time to force competition out of the market.
competitive pricing is when prices are set based on ______.
competitive pricing is when prices are set based on competitors.
psychological pricing is when prices are set in order to _____ consumers by making them seem _____.
psychological pricing is when prices are set in order to entice consumers by making them seem cheaper. (£9.99)
factors affecting choice of pricing strategy?
USP/differentiation, competition, brand strength/loyalty, stage in product life cycle, costs of production
what is dynamic pricing?
prices change frequently in response to changes in demand. (e.g; at peak demand, prices will go up)
price _______ sites make it ______ for consumers to ______ prices therefore creating more ________.
price comparison sites make it easier for consumers to compare prices therefore creating more competition.
