Unit 3: Chapter 13 Flashcards
The Marketing Mix: Price
1
Q
Define Price
A
the amount paid by the customer for a good/service
2
Q
What are the strategies for pricing?
A
- cost plus pricing
- penetration pricing
- price skimming
- competitive pricing
- psychological pricing
- promotional pricing
extras:
- loss leader pricing
- dynamic pricing
3
Q
What is price elasticity?
A
if you change the price of a product, the sales will change.
higher price - lower sales or lower price - higher sales
4
Q
What is a price inelastic product?
A
a product in which no matter how much you change your price you sales remain constant (or increase if you raise price)
these products can make you raise your price confidently - customers need it and can’t stop buying therefore they need to accept the price. no competition.
5
Q
What is a price elastic product?
A
Making a big change in the price.
up price by 5% the sales go down by 15%
lower price by 5% the sales go up by 15%
