Week 8

Question 1

Customer value based pricing:

Answer 1

Good value pricing, value added pricing

Question 2

Cost based pricing:

Answer 2

Focuses on having a lower cost rather than high cost high value

Question 3

Competition based pricing:

Answer 3

Matching or beating competitors prices

Question 4

Marketing skimming:

Answer 4

Charging the highest possible price consumers will pay

Question 5

Marketing penetration pricing:

Answer 5

Setting prices below competition to penetrate a market and gain market share quickly

Question 6

Advantages of cost based pricing:

Answer 6

Simple to calculate, low risk approach, prove will at least cover all costs, doesn’t consider competitor prices, not related to market demand or PLC stage

Question 7

Value based pricing advantages:

Answer 7

Command higher price points, promotes customer loyalty, balances supply and demand, helps you to develop high quality products or services, good brand imagine