This is when a firm changes a low price in order to penetrate the market, usually with a new product.
E.g. The first edition of a magazine may be cheaper to get people to read on and buy firther issues.
Skimming / Creaming
When a firm charges a very high price, usually on a new product, because of novalty value or because there is no competition.
E.g. When a new computer game comes out avid fans will want it even when it's more expensive.
A firm adds up the cost of what product costs to make, then adds a certain percent on to the price.
£9.99 is used instead of £10 to make products seem cheaper.
A special price is charged to attract new customers or an old product or to sell off old products - like in a sale.
This is when a firm charges different prices for the same products to different customers or at different times.
E.g. Electricity is cheaper at night.
A product sold at a loss making price in order to encourage customers to buy other products from the business.
A firm charges a low price to attract you to buy something but the refills or extras are much more expensive.