product price place promotion Flashcards
1
Q
what is penetration pricing?
A
setting a lower price to encourage consumers to purchase the product and then slowly raise the price
2
Q
what is price skimming?
A
setting a high price to maximise profits whilst it remains unique
3
Q
what is cost plus pricing?
A
a profit percentage that is added to the average cost of producing the good
4
Q
what is competitive pricing?
A
where a business prices its products based on the competition
5
Q
what is psychological pricing?
A
pricing goods just a little below a round figure e.g. £11.99 instead of £12
6
Q
what is contribution pricing?
A
price is based on the variable cost plus a contribution towards overheads and profits
the business can price the product lower than usual for some customers if it makes a positive contribution to the business
6
Q
A
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6
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