Types Of Price Flashcards
What is Premium Pricing
Premium Pricing is when the price is deliberately high and it is to signal luxury or quality. This will have a high profit margin on each sale.
What is Market/Competitive Pricing
Setting the price the same as competitors or rivals
What is Low /Value Pricing
Low /Value pricing is when the price is set below the market to attract customers and the low prices can be associated with the bad quality
What is Penetration Pricing
Penetration Pricing is when the price is set lower than the competitors prices in order to be able to enter a new market.
What is Promotional Pricing
Promotional Pricing is when the product is sold at a very low price for a short period of time
What is Demand Orientated Pricing
Demand Orientated Pricing is when prices change depending on the wants for the product
What is Psychological Pricing
The price charged by the business to make the customer think the product is actually cheaper than it is.
What is Market Skimming Pricing
Market Skimming is when a high price is set for a
new product on the market
What is Destroyer Pricing
Destroyer Pricing involves selling the product at a low price in order to destroy new competition.
What is Cost Plus Pricing
Cost Plus Pricing is when u calculate how much the product will cost to produce and adding a percentage on it to make profit
