Topic Six, Part 8 - Pricing Strategies Flashcards
What are pricing strategies?
Methods businesses use to encourage shoppers to buy products
What is price skimming?
Business sets a high price in an attempt to gain profits quickly
What is penetration pricing?
Set the price low to establish a new product into the market and gain a market share
What is premium pricing?
Set high price to create a brand relation to high quality
What is psychological pricing?
Setting a price that sounds less than it really is. 99p
What are Loss leaders?
Enticing consumers into a particular department by placing offers in certain places
What is competition based pricing?
Business set prices below their competitors until they react to change.
What is predatory pricing?
An anti-competitive strategy to undercut prices to force new threats out of the market
What is promotional pricing?
- Buy one get one free
- price reductions
- 3 for 2 offers
What is cost plus?
Businesses set the price based on production costs
