Topic 7: Pricing Strategy Flashcards
1
Q
What are the pricing objectives
A
to maximise profits
to increase market share
to achieve product quality leadership
2
Q
What are the forms of pricing for financial services?
A
interest rates
fees
premiums
interest rates payable
3
Q
What are the internal influencing factors for price?
A
pricing objectives
other marketing mix
costs
risks
4
Q
What are the external influencing factors for price?
A
shareholders customer competitors intermediaries regulations
5
Q
What are the major pricing strategies for financial services?
A
skimming penetration competitive loss-leader segmentation value and relationship tactical cost plus risk-based
6
Q
What are the problems faced by banks in identifying costs?
A
allocation
distinguishing fixed and variable
different customers, different costs
7
Q
Where does cross subsidisation occur?
A
between sectors
across customers of same service
8
Q
What is the problem with cross-subsidisation?
A
vulnerable to competitors
