Theme 1 Flashcards
1
Q
Design Mix?
A
- Function
- Aesthetic
- Cost
2
Q
What are the 6 different Pricing Strategies?
A
- Price Skimming
- Cost Plus
- Predatory Pricing
- Competitive Pricing
- Psychological Pricing
- Penetration Pricing
3
Q
What is Price Skimming?
A
- Price Skimming is where a product is initially launched at a High price, then price is lowered over time.
4
Q
What is Cost Plus?
A
- Cost Plus is where a business prices a product by adding a percentage on to how much it costs to manufacture the product.
5
Q
What is Predatory Pricing?
A
- Predatory Pricing is where a business sets the price of a product extremely low (even if it means they are losing money) in order to eliminate all competition (illegal).
6
Q
What is Competitive Pricing?
A
- Competitive Pricing is where a business bases the price of it’s products off the competition’s prices.
- A business may look to ‘Price Match’ or offer lower prices than it’s Competitors.
7
Q
What is Psychological Pricing?
A
- Psychological pricing is a pricing strategy which can make goods look more appealling & a better deal.
- E.g $3.99 instead of $4
- E.g BUY 1 GET 1 FREE
8
Q
What is Penetration Pricing?
A
- Penetration Pricing is where a business initially offers its products at a lower price than competitors to gain foothold in a competitive market.
